Impact Healthcare REIT has acquired two care homes portfolios and has agreed forward funding on the construction of a 94-bed home in Hartlepool for a combined £61.1m.
The REIT will add 13 care homes compromising 925 beds to its portfolio.
Holmes Care Group has been acquired for £47.5m in a sale and leaseback transaction. Holmes’ portfolio contains nine homes – one in Aberdeen and eight in Glasgow and around Scotland’s central belt – with a combined total of 649 beds.
A subsidiary of Holmes will continue to operate the homes after the deal is completed, and the homes will be let on new leases that have fixed 25-year terms with no break clauses.
The acquisition reflected a yield of 7.4%.
Impact Healthcare has also acquired three homes in Bradford from Victorguard, which compromise 182 bedrooms, for £7.5m.
The three homes will be operated by Silverline Care, and previously went through a period of underperformance. To support Silverline’s turnaround plan for the three assets, Impact Healthcare will commit £300,000 to the homes, and has agreed a rent-free period of six months.
The initial rent is £630,000 per annum, reflecting a yield of 8.1%. The homes are let on new leases that have fixed 25-year terms with no break clauses.
Impact Healthcare has also agreed to forward fund the construction of a new 94-bed care home in Hartlepool, which is to be built by a subsidiary of Prestige Group.
The development has planning in place and is targeting completion in 12 months. Prestige has committed to build the home for a fixed price of £6.1m, including the value of the land.
The three acquisitions bring Impact Heathcare’s total number of care homes to 99, with 5,253 beds.
These transactions will be financed from the group’s existing cash resources and available debt facilities, of which £49.9m is undrawn.
The REIT said it is “at an advanced stage” on a number of other potential transactions and “expects to make further announcements in due course”.
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