Public Service Properties sells German care asset

Public Service Properties continued down the path of asset disposal on Tuesday, announcing the sale of its Brakel care home property in North Rhine-Westphalia, Germany.

The AIM-traded European real estate investment and finance company said the deal was worth a gross €3m (£2.3m).

Public Service Properties said the sale was executed with a company owned by the same beneficial owner as the tenant at Brakel, was concluded under German law and was expected to close within six weeks.

The asset was sold at the same value shown in the compay's unaudited consolidated results, published on 30 June 2015.

"The company is pleased to announce a further disposal after a period of protracted negotiation", said Public Service Properties chairman Patrick Hall.

"[We] will make announcements on progress of any further disposals as and when it is appropriate", he added.

As there was no debt secured against the property, the company planned to apply the sale proceeds to settle €0.1m transaction costs.

The balance would be used for general working capital purposes, pending a proposed return of capital to shareholders. The company's board promised a further announcement on this in due course.

Public Service Properties was still testing the market for its three remaining care homes in Germany, the board indicated.