MedicX, a €365m primary care player, eyes Cork expansion

Fund in talks to acquire Michelstown Living Health Clinic

MedicX has worked in Northern Ireland previously but has yet to make an investment in the Republic.

MedicX has worked in Northern Ireland previously but has yet to make an investment in the Republic.

 

MedicX Fund, a £291 million (€365 million) healthcare investment property and development company listed on the London Stock Exchange, is in talks to acquire the Living Health Clinic in Mitchelstown, Co Cork.

The primary care centre is owned by a consortium of general practitioners from the Cork area. It was described by Alex White last year when he was minister of state at the Department of Health with responsibility for primary care as a “model” for others in the sector in Ireland.

The centre is understood to have debts of about €10 million owed to KBC Bank. Among the services it offers are: GP services, radiology, advanced diagnostics and surgical day-care services.

“We are in discussions with a number of potential investors,” Frank Doheny, general manager of the clinic said. “We have nothing formalised with any party currently.”

He declined to comment further.

Dr Tom O’Callaghan, chief executive of the iHeed Institute and brother of e-learning entrepreneur Barry O’Callaghan, originally founded the clinic.

Dr O’Callaghan referred The Irish Times to Mr Doheny for comment. MedicX did not respond to requests for comment.

MedicX is a major primary care health centre developer in Britain. It has worked in Northern Ireland previously but has yet to make an investment in the Republic. It is also believed to be looking at acquiring a primary care centre in Tallaght as it mulls going on the acquisition trail in the Republic as its economy begins to recover.

The MedicX Fund bought a primary care centre being developed in Norwich last month for £2.7 million. Its total property portfolio comprises 136 properties across the UK, of which 129 are operational and fully let, with seven under construction.

In total it has committed investment of £500 million in healthcare facilities in the UK. Its share price has performed strongly this year, boosted by strong rental income growth and strategic expansion. It has the financial firepower to become a major consolidator in the Irish primary care sector if it decides to.