The Board of Directors of Impact Healthcare REIT plc (ticker: IHR) is pleased to announce that the Group has acquired, in a sale and leaseback transaction, a care home in Bristol for a total consideration of £4.9 million (including costs).
The home operates as two units on one site: Fairview Court and Fairview House. It is being sold by its current owners as part of their retirement from the business. On completion the home will be operated by Welford Healthcare Limited (“Welford”), which is owned and managed by Peter Madden, a high quality operator with an established track record of successfully managing and adding value to care homes. The Group will enter into a new full repairing and insuring lease with Welford for an initial term of 25 years, with an option for Welford to extend to 35 years. Welford has committed to a minimum annual expenditure on maintenance.
The initial rent of £356,000 receivable under the lease is subject to annual, upward only rent reviews, increasing in line with the Retail Prices Index, with a floor of 2% p.a. and a cap of 4% p.a.
Fairview Court was built by the vendors in 2006 with 49 single bedrooms, all are en-suite, providing nursing with dementia care. Fairview House is a 22-bed unit in a period building, providing residential care. Both units are rated “Good” by the Care Quality Commission and are operating at or near full capacity.
The Board believes that the principal benefits that make this care home an attractive addition to the Company’s portfolio include:
The home is one of the target acquisitions identified by the Group at the time of the fundraise completed in November 2017 and is in line with the Group’s strict investment criteria and returns profile. The Group has also agreed exclusivity on a number of further acquisitions, and continues to evaluate a strong attractive pipeline of potential investment opportunities.
For further information please contacts:
Impact Health Partners LLP via Newgate Communications
Winterﬂood Securities Limited
Tel: 020 3100 0000
Newgate Communications (PR Adviser)
Tel: 020 7680 6550
The Company’s LEI is 213800AX3FHPMJL4IJ53.
Further information on Impact Healthcare REIT is available at www.impactreit.uk