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.
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.
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:
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:
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.
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.
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