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 residential care homes, is pleased to announce that the Group has acquired four care homes and added a high-quality new tenant. The net purchase price is £21.0 million, reflecting a net initial yield of 7.4%.
The four homes are being acquired from subsidiaries of the Maria Mallaband and Countrywide Group (“MMCG“) in a sale and leaseback transaction. MMCG will continue to operate the homes after completion. The four homes have a combined total of 296 elderly care beds, of which 270 are currently in operation. MMCG is a top-10 operator of care homes across the UK, with the group
comprising 82 homes.
One home, Belmont House, is located in Harrogate. Opening in 2007, it has 100 beds, all of which have en suite bathrooms. The other three homes are in Scotland. Wallace View in Stirling opened in 2004 and has 60 beds, while Parksprings in Motherwell opened in 1997. It currently operates 70 beds and is bringing a further 26 beds into operation this year. All of the bedrooms in each home are en suite. Thorntree Mews is an attractive converted period building in Falkirk with a modern extension offering a total of 40 beds, over two thirds of which are en suite.
There is a potential asset management opportunity at Parksprings to convert a unit formerly leased to the NHS, which is currently mothballed, into a complex care unit.
The homes are now on new leases that have fixed 25-year terms with no break clauses and will be operated as part of MMCG’s Countrywide portfolio. The rents receivable under the leases will be subject to annual upward-only rent reviews linked to the Retail Prices Index, with a floor of 2% p.a. and a cap of 4% p.a. MMCG has committed to a minimum annual expenditure on the
maintenance of the homes.
This investment comprises one of the six target transactions that the Company included in its announcement on 15 April 2019 and will be funded from the Group’s current debt facilities.
For further information please contact:
Impact Health Partners LLP via Maitland/AMO
Winterﬂood Securities Limited
Tel: 020 3100 0000
RBC Capital Markets
Tel: 020 7653 4000
Maitland/AMO (Communications Adviser)
Tel: 020 7379 5151
The Company’s LEI is 213800AX3FHPMJL4IJ53.
Further information on Impact Healthcare REIT is available at www.impactreit.uk.