Impact Healthcare buys three care homes – Impact Healthcare REIT is buying three care homes. One deal has completed and it has exchanged contracts to acquire two further properties. All of these are leased to existing tenants of the REIT. The purchase price is £14.3m (plus transaction costs). The deal adds three care homes with a total of 208 beds to the portfolio, which will then total 112 care homes and 6,191 beds. The contracted annual rent roll rises to £35.5m, a 4.7% increase on the 30 September 2021 level.
The homes have EPC ratings of B1 (two homes) and EPC C1 on the third home (with a strategy to deliver an EPC B). Rent cover at the acquisition of each care home will be approximately two times. All of these assets will be leased with fixed terms of 25 years and annual upward-only rent reviews linked to inflation based on RPI and commitments from each tenant to a minimum annual expenditure on the maintenance of the care homes.
Springhill Nursing care home in Kilmarnock, Scotland, for £3.25m
Springhill Nursing care home was acquired in a sale and lease back with Silverline, an existing tenant. Springhill, located in Kilmarnock, Scotland, is a four storey Georgian building with a substantial purpose-built extension offering a total of 61 beds with en suite wet room facilities. The Group paid a net purchase price of £3.25 million with an initial annual rent of £243,000 with rent cover at acquisition of just under two times. The acquisition price reflects gross initial yield of 7.5%. The home has an EPC rating of C531 with a strategy to achieving an equivalent EPC rating of B. Silverline has entered into the Group’s standard lease, with a fixed term of 25 years with no break clauses and RPI uplifts of between 2% and 4% per annum. Silverline has committed to a minimum annual expenditure on the maintenance of the care homes.
Two care homes in Northern Ireland leased to Electus Healthcare for £11.02m
Both care homes are purpose-built in established residential areas and provide a combined total of 147 en suite bedrooms. One of the homes is located in the north-west of Belfast, the second in the coastal town of Larne. Both homes have an EPC rating B1. The two homes will be operated by an existing tenant, Electus. The initial annual rent has been agreed at £854,500, reflecting a gross initial yield of 7.8%. Rent cover at acquisition will be two times. Electus will enter the Group’s standard leases, with a fixed term of 25-years with no break clauses. The rents 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% per annum. Electus has committed to a minimum annual expenditure on the maintenance of the care homes.
IHR : Impact Healthcare buys three care homes