Impact Healthcare REIT completes two Ipswich deals – Impact Healthcare REIT (IHR) offers investors exposure to a diversified portfolio of UK healthcare real estate assets, in particular care homes. The company has this morning announced that it has exchanged contracts to acquire two care homes and added a high-quality new tenant for a net outlay of £12.9m; the initial rent will be £950,000.
Baylham Care Centre is a 55-bed purpose-built care home, which IHR says has been give a rating of ‘outstanding’ by the Care Quality Commission (CQC). Barham Care Centre is a 43-bed care home, which has a ‘good’ rating by CQC. Both homes are near Ipswich.
IHR signs up a new tenant
The homes will be leased to a new operator for the company, Optima Care (Optima). Optima is a specialist health and social care provider with experience in operating residential dementia care homes for the elderly. Founded in 2004, IHR says Optima has built an excellent reputation for providing high quality specialist care, support and services. The two new leases are on Impact’s standard terms, with a fixed term of 25 years and rent subject to annual upward-only reviews linked to the retail prices index, with a floor of 2% p.a. and a cap of 4% p.a. Optima has committed to a minimum annual expenditure on the maintenance of the homes.
Asset management opportunity
Barham was extended in 2017, when 17 bedrooms were added. IHR says that there is a further asset management opportunity to extend the home through building 21 new bedrooms with full bathrooms, while removing 11 bedrooms in an existing single storey extension, adding a net 10 bedrooms to the home.
This investment comprises one of the six target transactions that the company included in its announcement on 15 April 2019.
IHR provides exposure to a diversified portfolio of UK healthcare real estate opportunities, in particular residential care homes. The group’s investment policy is to acquire, renovate, extend and redevelop high quality healthcare real estate assets in the UK and lease those assets primarily to healthcare operators providing residential healthcare services under full repairing and insuring leases.
The company’s intention is to pay a target dividend of 6.17 pence per share for the year to 31 December 2019. IHR will seek to grow the target dividend in line with the inflation-linked rental uplifts.
IHR: Impact Healthcare REIT completes two Ipswich deals
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