The Board of Directors of Impact Healthcare REIT plc (ticker: IHR), the real estate investment trust which gives investors exposure to a diversified portfolio of UK healthcare real estate assets, in particular care homes, is pleased to announce that the Group has recently completed the acquisition of a property and exchanged contracts to acquire two further properties all with existing Group tenants.
Once completed, these transactions are expected to deliver the following benefits to the Group:
Springhill Nursing care home in Kilmarnock, Scotland, for £3.25 million
Earlier in the quarter, the Group completed the acquisition of Springhill Nursing care home in a sale and lease back with Silverline, one of the Group’s existing tenants. 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.
Portfolio of two care homes in Northern Ireland leased to Electus Healthcare for £11.02 million
The Group has exchanged contracts for the acquisition of two care homes in Northern Ireland, subject to re-registration with the Regulation and Quality Improvement Authority, which is expected to be procedural. 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, and take our total care homes in Northern Ireland to five with 340 beds.
The Group is to pay a net purchase price of £11.02 million to the vendors. 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.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Impact Health Partners LLP via Maitland/AMO
Jefferies International Limited
Tom Yeadon firstname.lastname@example.org
Neil Winward email@example.com
Francesco Namari firstname.lastname@example.org
Tel: +4420 7029 8000
Winterflood Securities Limited
Neil Langford email@example.com
Joe Winkley firstname.lastname@example.org
Tel: +4420 3100 0000
Maitland/AMO (Communications Adviser)
James Benjamin email@example.com
Tel: +44 7747 113 930
The Company’s LEI is 213800AX3FHPMJL4IJ53.
Further information on Impact Healthcare REIT is available at www.impactreit.uk.