AEW UK Long Lease REIT has bought two residential care homes properties – in the West Midlands and East Riding of Yorkshire – for £10.3m.
Both were acquired from 90 North Real Estate Partners and are let to Prime Life, a care services provider operating 57 care homes based in Lincolnshire and the East Midlands.
The Lyndon Croft Care Centre, located on Ulleries Road, Solihull, was acquired for £6.2m. It provides 52 beds for those with needs associated with old age and dementia. The property provides an unexpired lease term of 31 years. The acquisition price reflects a net initial yield of 5.5%.
Westerlands Care Village, located on Elloughton Road, Brough, was purchased for £4.1m and comprises 62 beds in two adjacent homes. Elloughton House provides residential and nursing care as well as care of those with dementia needs. Brough House provides specialist memory care for high dependency residents. The acquisition price reflects a net initial yield of 6% and the properties have an unexpired lease term of 31 years.
The transaction increases the total amount invested by AEW UK Long Lease REIT since June to £41m. In addition to this, it has a further four assets under offer and expects to make additional announcements in the coming weeks.
AEW UK Long Lease REIT raised £80.5m from institutional and retail investors at its IPO in June and at that time it stated its expectation to invest the net proceeds within nine months of listing. The company is targeting an annual dividend of 5.5 pence per share paid quarterly, once fully invested and levered, with an ambition to increase in line with UK inflation thereafter.
Alex Short, director of AEW UK Investment Management, and portfolio manager of the company, said: “These latest acquisitions demonstrate our commitment to investing in specialist, under-represented sectors in the property market.”
Gerald Eve advised 90 North; Knight Frank advised AEW.
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