A PROFITABLE DISPOSAL ABOVE CARRYING VALUE OF A SINGLE CARE HOME, AN ACCRETIVE ACQUISITION AND SMALLER RELATED PARTY TRANSACTION
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, announces that it has sold a non-strategic care home for £1.68 million and acquired a purpose-built high quality care home in the South-West of England for a net purchase price of £5.75 million.
Impact has completed on the sale of Heeley Bank a 67-bed care home in Sheffield, acquired as part of a portfolio of four homes leased to MMCG in March 2020. The home was not a long-term strategic asset for Impact or MMCG, and as part of the Group’s active portfolio management strategy, was jointly marketed post acquisition. The sale at £1.68 million was 29% above the purchase cost of the home and 12% above the carrying value at 30 June 2021.
Impact has also exchanged contracts to acquire a purpose-built 83-bed care home situated in a small coastal town in the South West of England, benefitting from an affluent catchment area with supportive age demographics and limited competition. All the home’s bedrooms are en suite and the home has a good reputation locally with a well-established trading history. The rent has been set at a sustainable level to produce an initial rent cover on the home in excess of 2 times.
The Group has appointed one of its existing tenants, Minster Care Management Limited (“Minster“), who introduced this opportunity to the Group, as the new tenant of this home at an initial rent of £414,000, reflecting a net initial yield of 7.2%. The property benefits from a new, unbroken 20-year lease, with rent subject to an annual upward-only review linked to the Retail Price Index, with a floor of 2% per annum and a cap of 4% per annum.
The Group continues to work on a strong pipeline of further acquisitions, a number of which are in exclusivity.
The entry into the new lease with Minster is deemed to be a smaller related party transaction for the purposes of Listing Rule 11.1.10R and this announcement is therefore made in accordance with Listing Rule 11.1.10R(2)(c).
For further information please contact:
Impact Health Partners LLP via Maitland/AMO
Jefferies International Limited
Tom Yeadon email@example.com
Neil Winward firstname.lastname@example.org
Francesco Namari email@example.com
Tel: +4420 7029 8000
Winterflood Securities Limited
Neil Langford firstname.lastname@example.org
Joe Winkley email@example.com
Tel: +4420 3100 0000
Maitland/AMO (Communications Adviser)
James Benjamin firstname.lastname@example.org
Tel: +44 7747 113 930
The Company’s LEI is 213800AX3FHPMJL4IJ53.
Further information on Impact Healthcare REIT is available at www.impactreit.uk.