THE DEAL
In June 2003, NPIL exited its entire investment in UK Healthcare Partners Limited Partnership Incorporated (UKHP). The 80% stake was acquired in June 2002, as part of Capio AB's sale and leaseback of its 20 UK private hospital properties. Capio retained 20% of the partnership.

THE BUSINESS
Capio is one of the leading pan-European private providers of healthcare to both the publicly and privately funded sectors, with activities in the UK, Sweden, Norway, Denmark and France. Capio acquired the 20 hospitals in 2001 as part of its acquisition of Community Hospitals Group Plc, now renamed Capio Healthcare UK, the UK's 4th largest private hospital operator.

THE NPIL DIFFERENCE
NPIL's appetite for exposure to the growing UK private healthcare sector, coupled with a willingness to invest in quality, strategic property assets, was the investment thesis for the transaction. Since the acquisition NPIL received considerable interest from investors attracted by the continued growth of the private healthcare market, the quality of Capio's UK operations and the structure of the leases.

Capio, however, decided to take advantage of the trend in the capital markets (away from off balance sheet structures), and the advantageous interest rate environment to regain 100% control of the partnership by re-purchasing NPIL's 80% stake.

NPIL successfully entered and exited this investment in a 12 month period, making a significant and attractive return substantially in excess of its hurdle rate.

"Capio's desire to regain control of its strategic property assets, against an attractive financing backdrop, has enabled NPIL to exit in a short period of time with very attractive returns. We remain convinced of the attractions of the healthcare field generally and continue to seek new investment opportunities therein".

Brian Berry, NPIL CEO