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 healthcare real estate assets, is pleased to announce that the Group has acquired two care homes with a combined total of 138 beds – Carnbroe Care Centre (“Carnbroe”), near Glasgow, and Grenville Court Care Home (“Grenville”), near Norwich – for a total consideration of £8.3 million (including costs).
Carnbroe was built in 2007 and offers 74 beds, including specialised dementia care units. Grenville was built in 1997 with 64 beds and also offers dementia care. The homes were previously operated by Alpha Care Management Services Ltd (“Alpha Care”) and are being sold by the current owners as part of their retirement from the business.
The Company has agreed to enter in to a new lease for each home with Minster Care Group Limited (“Minster”). The terms of the two new full repairing and insuring leases will be substantially the same as the leases for the Group’s existing Minster portfolio, and will be reinforced by the existing Framework Agreement in place with Minster. Each lease has a 20-year term with no break clauses and an option to extend for a further two 10-year periods. The total initial rent of £608,000 receivable under the leases will be subject to annual upwards-only rent increases linked to the Retail Prices Index (“RPI”), with a floor of 2% p.a. and a cap of 4% p.a.
Minster has agreed to commit to a minimum annualexpenditure on maintenance. In addition, Minster will also operate another care home, previously operated by Alpha Care, which is owned by a third party. The net initial yield and level of rent cover are in line with the terms on which the Group acquired its seed portfolio and in line with the Group’s investment criteria and returnsprofile.
The Board believes that the principal benefits that make these care homes an attractive addition to the Company’s portfolio include:
In addition, the Board is also pleased to confirm that the Group has completed on the second of the three Prestige homes which exchanged in January 2018, Roseville with 103 beds. In total so far during 2018, the Company has added 366 operating beds to its portfolio, a 14.5% increase on the number of beds as at 31 December 2017.
The Group has also agreed exclusivity on a number of further acquisitions, continues to make progress in adding beds to its existing portfolio through its programme of active asset management and continues to pursue a strong pipeline of potential new investment that are in line with our investment criteria and returnsprofile.
The Company complies with the relevant provisionsof the Listing Rules (“LR”) and has adopted a related party policy consistent with LR11. Minster is considered a related party under this policy and entering into new leases for Carnbroe and Grenville constitutes a smaller related party transaction as defined in LR11.1.10. The Board is satisfied that this transaction is fully compliant with the Company’s related party policy.
For further information please contacts:
Impact Health Partners LLP via Newgate Communications
Mahesh Patel
Andrew Cowley
Winterflood Securities Limited
Joe Winkley
Neil Langford
Tel: 020 3100 0000
Newgate Communications (PR Adviser)
James Benjamin
Anna Geffert
Patrick Hanrahan
Leena Patel
Tel: 020 7680 6550
Email: impact@newgatecomms.com
The Company’s LEI is 213800AX3FHPMJL4IJ53.
Further information on Impact Healthcare REIT is available at www.impactreit.uk