PGIM Real Estate has bought a portfolio of six purpose-built care homes from Legal & General Investment Management for £70.2m.
The portfolio, which comprises 430 registered bedrooms, all with single en suite wet rooms, is let to Care UK, with a weighted average unexpired lease term of 23 years. The leases are subject to annual RPI-linked rent reviews, subject to a collar and cap of 0-5% pa.
Five of the care homes are in East Anglia, with 41% of the beds subject to a block contract agreement with Suffolk County Council.
LGIM forward funded the five homes in 2013. They were developed in conjunction with Suffolk County Council to replace the area’s outdated homes and provide essential continuity of care for the region. The sixth asset is in Poole, Dorset, which LGIM acquired in 2014 as a stand-alone investment.
Gerald Eve and JLL advised LGIM on the disposal; CBRE acted for PGIM Real Estate.
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