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 exchanged contracts to acquire Holly Lodge Care Home (“Holly Lodge“), a care home with 40 beds, for a net purchase price of £1.35 million, reflecting a net initial yield of 8.7%.
Holly Lodge is located in Shildon in County Durham, 11 miles north of Durham and was purpose‐built to a high standard in around 2005. All bedrooms have en suite facilities. The home is operating at full capacity, has been well maintained and is rated Good by the CQC. This investment is the second to be announced of the four target transactions that the Company included in its announcement on 24 October 2018, which together would add in excess of 450 beds.
Careport Advisory Services Limited (“Careport“), one of our existing tenants, currently operates this home under the Mariposa brand on behalf of the vendors, Monarch Alternative Capital LP (“Monarch“). Careport will continue to operate this home under a new fully repairing and insuring lease with a term of 25 years with no break clause and a tenant option to extend to 35 years at the end of year 10. The lease will be subject to annual upward‐only rent reviews linked to the Retail Prices Index (“RPI”), with a floor of 2% p.a. and a cap of 4% p.a. Careport has agreed to commit to a minimum annual expenditure on maintenance.
Completion will take place as soon as regulatory approvals from the CQC for the reorganisation of the management arrangements have been received.
For further information please contact:
Impact Health Partners LLP via Newgate Communications
Winterﬂood Securities Limited
Tel: 020 3100 0000
RBC Capital Markets
Tel: 020 7653 4000
Newgate (Communications Adviser)
Tel: 020 7680 6550
The Company’s LEI is 213800AX3FHPMJL4IJ53.
Further information on Impact Healthcare REIT is available at www.impactreit.uk
The Group is a real estate investment trust (“REIT”) which aims 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 opportunities, in particular residential care homes. The Group’s investment policy is to acquire, renovate, extend and redevelop high quality healthcare real estate assets in the UK and lease those assets primarily to healthcare operators providing residential healthcare services under full repairing and insuring leases.
The Group has paid an aggregate dividend of 6.0 pence per share for the first 12 months from Admission, which equates to a yield of 6 per cent. per annum on the IPO Issue Price, payable in quarterly instalments.
The Group’s Ordinary Shares were admitted to trading on the main market of the London Stock Exchange, Specialist Fund Segment, on 7 March
This announcement which has been prepared by, and is the sole responsibility of, the Directors of the Company and has been approved for the purposes of section 21 of the Financial Services and Markets Act 2000 by Winterflood Securities Limited
(“Winterflood”), which is authorised and regulated by the Financial Conduct Authority.
This announcement is an advertisement and does not constitute a prospectus or a key information document (a “KID”) relating to the Company and does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for, any shares in Company in any jurisdiction nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract therefor. Once published, copies of the prospectus will be available from www.impactreit.uk.
Recipients of this announcement who are considering acquiring ordinary shares following publication of the prospectus are reminded that any such acquisition must be made only on the basis of the information contained in the prospectus (which may be different from the information contained in this announcement) and following receipt of the KID, any subscription for ordinary shares will be subject to specific legal or regulatory restrictions in certain jurisdictions. Persons distributing this announcement must satisfy themselves that it is lawful to do so. The Company assumes no responsibility in the event that there is a violation by any person of such restrictions.
This document may not be published, distributed or transmitted by any means or media, directly or indirectly, in whole or in part, in or into the United States. This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The securities mentioned herein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “US Securities Act”) or with any securities regulatory authority of any state or other jurisdiction of the United States and will not be offered, sold, exercised, resold, transferred or delivered, directly or indirectly, in or into the United States or to, or for the account
or benefit of, any US person (as defined under Regulation S under the US Securities Act). The Company has not been, and will not be, registered under the U.S. Investment Company Act of 1940, as amended.
Neither this announcement nor any copy of it may be: (i) taken or transmitted into or distributed in any member state of the European Economic Area (other than the United Kingdom and the Republic of Ireland), Canada, Australia, Japan or the Republic of South Africa or to any resident thereof, or (ii) taken or transmitted into or distributed in Japan or to any resident thereof. Any failure to comply with these restrictions may constitute a violation of the securities laws or the laws of any such jurisdiction. The distribution of this announcement in other jurisdictions may be restricted by law and the persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.
This announcement may include “forward-looking statements”. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company’s products and services) are forward-looking statements. Forward-looking statements are subject to risks and uncertainties and accordingly the Company’s actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements. These factors include but are not limited to: changes in general market conditions, legislative or regulatory changes, changes in taxation regimes or development planning regimes, the Company’s ability to invest its cash and the proceeds of the Issue in suitable investments on a timely basis and the availability and cost of capital for future investments. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Listing Rules
or Prospectus Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.
Winterflood, which is authorised and regulated by the Financial Conduct Authority in the United Kingdon, and RBC Europe Limited (trading as RBC Capital Markets), which is authorised by the Prudential Regulatory Authority and regulated by the Financial Conduct Authority in the United Kingdom, are acting only for the Company in connection with the matters described in this announcement and neither Winterflood nor RBC Capital Markets are acting for or advising any other person, or treating any other person as its client, in relation thereto and will not be responsible for providing the regulatory protection afforded to clients of Winterflood nor RBC Capital Markets respectively or advice to any other person in relation to the matters contained herein. Neither RBC Capital Markets nor any of its directors, officers, employees, advisers or agents accepts any responsibility or liability whatsoever for this announcement, its contents or otherwise in connection with it or any other information relating to the Company, whether written, oral or in a visual or electronic format.