Southern Cross Healthcare, the carehomes group, has raised £13.3m after selling two property freeholds and a carehome supplies business. The group said the money would be used to reduce borrowings, and that six further disposals were planned.

The two carehomes are located in Lanarkshire and Taunton, and have both been leased back to the group at yields of about 8 per cent after being sold for a combined total of £9.6m. The gross asset value of the freeholds was £11.7m. Including fees, Southern Cross will take a book loss of £2.4m on the properties.