Our strategy

Our strategy is to identify new healthcare properties and tenants who will diversify our portfolio and deliver strong economies of scale, with efficient operations alongside a good quality of care. We look for investments that, under our ownership, will provide value for money to our tenants’ customers and residents, while delivering attractive and stable returns to our investors for the long term.

Our objectives

The Company’s investment objective is to seek to provide Shareholders with an attractive return, principally in the form of quarterly income distributions and with the potential for capital and income growth through exposure to a diversified portfolio of Healthcare Real Estate Assets.

Our investment policy

The Company’s investment policy is to acquire, own, lease, renovate, extend and redevelop high quality, Healthcare Real Estate Assets in the UK, in particular residential care homes and to lease those assets to care home operators and other healthcare service providers under full repairing and insuring leases.

The Company will continue to pursue its investment policy as follows:

  • In order to manage risk in the Portfolio, at the time of investment, no single asset shall exceed in value 15% of the Group’s total gross asset value.
  • No single customer paying for care provided in assets owned by the Group will account for more than 15% of the aggregate revenues of the Tenants to whom the Group’s assets are leased from time to time, measured at the time of acquisition.
  • The annual contracted rent from any single Tenant is not expected to exceed 40% of the total annual contracted rent of the Group at 31 December 2019, and, thereafter, the annual contracted rent from any single Tenant is not expected to exceed 40% of the total annual contracted rent of the Group, measured at the time of investment.
  • The Portfolio will be diversified by location across the UK with focus on areas where there is a good balance of supply and demand for the provision of care and assets are available at attractive valuations.
  • Within these locations, the Group will acquire existing modern buildings or those that are currently considered fit for purpose by occupiers, but in respect of which the Investment Adviser has developed a plan to add value to the asset through targeted capital expenditure.
  • Leases granted by the Group will be linked to the Retail Prices Index, have a long duration (with an unexpired lease term of at least 20 years) and will not be subject to break clauses. The Group will seek to amend any future leases acquired by the Group to obtain similar terms.
  • The Group will not undertake speculative development (that is, development of property which has not been leased or pre-leased), save for the refurbishment, extension or replacement of existing holdings in line with the limitation in the final bullet below so as to reposition a home in its local market and thus to increase the rent due.
  • The Group may invest in forward funding agreements or forward commitments to pre-let developments, subject to the limitation in the final bullet below, where the Group will own the asset on the completion of the work.
  • The gross budgeted development costs of any refurbishment, extension or replacement of existing holdings and/or forward funding and forward commitments, is limited to 25% of the Company’s gross assets at the time of commitment.

The Group will be permitted to generate up to 15% of its gross income in any financial year from non-rental revenue or profit related payments from Tenants, in addition to the rental income due under the leases.

In addition, the Group is also permitted to invest up to:

  • 10% of its Gross Assets, at the time of investment, in non-residential Healthcare Real Estate Assets, such as properties which accommodate GP or dental practices and other healthcare related services including occupational health and physiotherapy practices, pharmacies and hospitals or in non-healthcare related residential assets attached to residential Healthcare Real Estate Assets;
  • 25% of its Gross Assets, at the time of investment, in indirect property investment funds (including joint ventures) with a similar investment policy to that of the Company; and
  • 15% of its Gross Assets, at the time of investment, in closed-ended investment funds which are listed on the Official List,

however, the Directors have no current intention to acquire non-residential Healthcare Real Estate Assets or indirect property investment funds or to enter into joint venture arrangements.

The Group may also acquire or establish companies, funds or other SPVs which themselves own assets falling within the Company’s investment policy.

The Group will not acquire any asset or enter into any lease or related agreement if that would result in a breach of the conditions applying to the Company to hold REIT status. In addition, the Group will not acquire any asset, or enter into any lease or related agreement in assets, located outside of the U.K.

The Company may invest cash held for working capital purposes and awaiting investment in cash deposits, gilts and money market funds. It will not invest in derivatives but it may use derivatives for hedging purposes.

Borrowing policy

Gearing, calculated as borrowings as a percentage of the Group’s Gross Assets (including any borrowings incurred by any joint ventures or indirect property investment funds through which the Company may invest), may not exceed 35% at the time of drawdown.

Material changes to the investment policy will require the prior approval of Shareholders

The Directors do not currently intend to propose any material changes to the Company’s investment policy, save in the case of exceptional or unforeseen circumstances. Any material change to the investment policy of the Company will be made only with the approval of Shareholders.



Freeland House, Oxfordshire, one of the 56 care homes that formed the Seed Portfolio acquired in May 2017