TIAA Henderson Real Estate has made its debut into the care home sector with the purchase of a 264-bed portfolio.
On behalf of the Henderson UK Property OEIC, TH Real Estate paid £48.9m to a private vendor for the properties.
The portfolio comprises Caridean House in Edinburgh; Foxbridge House in Orpington, Kent; and Bowes House in Hailsham, East Sussex.
Each property was purpose built in 2013, and has unexpired lease terms of 30 years to Care UK, one of the UK’s top five care home operators.
Alice Breheny, global head of research at TH Real Estate, said: “As a house, we are increasingly focused on monitoring trends influenced by long-term demographic changes. Ageing demographics is a key example of this. The care home industry is a needs-driven one. In the UK, there is an undersupply of good care home stocks with a significant latent demand that is set to grow in the coming years.”
Marcus Langlands Pearse, director at TH Real Estate, added: “The acquisition fits within the fund’s strategy of acquiring assets in the alternative sector that provide long-term, inflation-proofed income streams, strong covenants, attractive total returns and further portfolio diversification.”
Knight Frank acted for the vendor; CBRE and Lambert Smith Hampton represented the buyer.
