Impact Healthcare REIT has sold a care home for £1.68m and bought a purpose-built, high-quality care home in the South-west of England for £5.75m.
Heeley Bank is a 67-bed care home in Sheffield, acquired as part of a portfolio of four homes leased to MMCG in March 2020. The home was not a long-term strategic asset for Impact or MMCG, and as part of the group’s active portfolio management strategy, was jointly marketed post acquisition. The sale at £1.68m was 29% above the purchase cost of the home and 12% above the carrying value at 30 June 2021.
Impact has also exchanged contracts to acquire a purpose-built 83-bed care home situated in a small coastal town in the South West of England, benefitting from an affluent catchment area with supportive age demographics and limited competition. All the home’s bedrooms are en-suite and the home has a good reputation locally with a well-established trading history. The rent has been set at a sustainable level to produce an initial rent cover on the home in excess of 2 times.
The group has appointed one of its existing tenants, Minster Care Management Limited, who introduced this opportunity, as the new tenant of this home at an initial rent of £414,000, reflecting a net initial yield of 7.2%. The property benefits from a new, unbroken 20-year lease, with rent subject to an annual upward-only review linked to the Retail Price Index, with a floor of 2% per annum and a cap of 4% per annum.
IHR : More property deals for Impact Healthcare REIT