Priory Group, renowned for treating people with mental and drug-addiction problems, has refinanced its balance sheet by agreeing to sell and lease back six hospitals to M&G Investments for £223 million.

The yield on the purchase price approaches 6%, according to an M&G spokeswoman. Future rent rises will be linked to the Retail Price Index, using a minimum and maximum increases of between zero and 5%. Priory will take an operating lease of 30 years. The six hospitals are at Roehampton, Woking, North London, Chelmsford, Bristol and Altrincham.