Impact Healthcare adds another five care homes
Impact Healthcare adds another five care homes – Impact Healthcare REIT has exchanged contracts to acquire five care homes with a combined total of 218 beds for a total consideration of £12.15m. The homes are: Briardene Care Home, Sovereign Lodge and Sovereign Court, all in Westerhope to the west of Newcastle; Derwent Care Home in Hamsterley, Durham; and The Grove in Marton, a suburb of Middlesborough.
All of the homes were purpose-built between 1999 and 2007. Between February 2016 and December 2017, their current owner, Monarch Alternative Capital LP, invested £1.39m (£6,380 per bed) to refurbish all five homes to a high standard. These homes are part of a larger portfolio held by Monarch.
The homes are currently managed on behalf of Monarch by Careport Advisory Services Limited, under their Mariposa and Papillon brands. Careport will continue to operate the homes following the acquisitions. Careport was formed nine years ago by John Beastall and Christopher Briddon to manage care homes owned by banks and other asset owners on the basis of short-term management contracts. Careport has established a successful track record of turning around underperforming care homes. With backing from the company, Careport will become the long-term tenant of homes that they have improved and stabilised through new long-term leases. The homes are trading well with 94% occupancy. Four of the homes are rated ‘Good’ by the CQC and one is rated ‘Requires Improvement’.
Each lease has a fixed 25-year term with no break clauses and a tenant option to extend to 35 years at the end of year 10. The total initial rent of £875,000 receivable under the leases will be subject to annual upward-only rent reviews linked to RPI, with a floor of 2% p.a. and a cap of 4% p.a. Careport has agreed to commit to a minimum annual expenditure on maintenance.
Completion will take place as soon as regulatory approvals from the CQC for the reorganisation of the management arrangements have been receive
IHR : Impact Healthcare adds another five care homes