The total consideration of $10.3 million was 100% funded by the company's bankers.
Under the varied lease with Generation REIT (ASX:GHC), the total rent paid by PHG will fall by $900,000 per annum from the rent currently paid across the two leases.
Generation REIT acquired the Westmead Rehabilitation Hospital Land & Buildings from St Andrews Healthcare and simultaneously executed a variation of the existing Property Lease with PHG.
The expected annual interest charge on the noted borrowings is forecast to be lower than the rent saving from the execution of the transaction.
The varied lease is for 25 years with two 10 year options.
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