Southern Cross CEO to leave

Source: Healthcare Digital

Date :04/09/2008 08:51:15

Southern Cross Healthcare Group plc said Thursday, September 4, that Chief Executive Bill Colvin is to leave the company as it announced another tranche of property sales.

The UK's biggest care home operator said it has agreed the sale and long-term leaseback of freehold interests of seven care homes, which will generate £21 million cash.

Southern Cross added that it is in talks with potential buyers for the remaining 13 freeholds to be divested and looks forward to progressing these in the coming weeks.

The property sale is part of a programme by Southern Cross to raise money to pay off a credit facility that the company raised earlier this year to fund additional acquisitions.

The care home operator also said Colvin is to leave the board "by mutual consent" in due course. The group added that Colvin has agreed to remain as Chief Executive to complete refinancing of the company and the further sale and leaseback of its owned homes.