Impact Healthcare REIT has recently exchanged contracts to acquire three purpose-built care homes in and around Glasgow. The homes are let to Silverline, which was already a tenant in the portfolio.
The purchase price is £8.1m (plus transaction costs). The initial annual rent has been agreed at £627,750, reflecting an accretive gross initial yield of 7.75%. The three care homes have 155 beds, all en-suite, between them. This brings the total portfolio to 131 care homes and 7,129 beds (at 31 December 2021: 124 homes and 6,720 beds).
One of the three care homes has an EPC rating of English equivalent B and the other two are English equivalent EPC C. There is a plan to bring these two homes to English equivalent EPC B.
Silverline will enter into Impact’s “new improved green leases” with fixed 25-year terms 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. Silverline has committed to a minimum annual expenditure on the maintenance of the care homes.
Completion is subject to re-registration with the Care Inspectorate. Once complete, Silverline will be leasing seven care homes from Impact with 398 beds.
The statement says that the investment manager, Impact Health Partners LLP, is in developed legal discussions on several projects and expects to make further announcements in the near future.
IHR : Three Glaswegian care homes for Impact