Asset Sale PricingThe agreed price of €300m for the nursing homes is considerably below the last reported fair value of the assets of €532m.
Asset ValuationThe disposal of part of the care home business for €300m values the assets at approximately a 30% discount to the last reported book value and at about a 45% discount to the end of FY21, following the acquisition of Deutsche Wohnen.
Refinancing ImpactDespite generating liquidity, the terms on which these transactions have been effected, and rising interest costs as debt is re-financed, will offset what is historically high rental growth.