Impact Healthcare has bought two care homes in Nottinghamshire for £11.1m.
The Mansfield homes were owned and operated by Woodleigh Care, whose owners are retiring from the business. Both homes, totalling 107 beds, will be operated by an existing Impact tenant, Welford Healthcare.
The deal has been made by way of a loan to Welford Healthcare, which will allow it to complete the acquisition of Woodleigh Care immediately. Impact said the structure creates several benefits for all stakeholders, including enabling Welford Healthcare to take immediate operational control of the homes, avoiding a potentially lengthy transition period while regulatory approvals are sought to register the operation of the homes in new legal entities, as well as other financial and operational efficiencies.
Once the regulatory approvals are received, Impact then has the option to acquire the property assets from Welford Healthcare, which also has the option to sell the property assets to Impact. Impact will receive interest payments equal to 7.7% per annum for the duration of the loan and, if either option is exercised, new 30-year leases.
Initial rent under the new leases is set at just over £700,000, reflecting a gross initial yield of 6.4%.
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