Impact Healthcare REIT has acquired a purpose-built, 83-bed care home in south-west England for £5.75m.
The London care home investor said all of the property’s bedrooms are ensuite and the home has a good reputation locally with a well-established trading history.
Impact Healthcare REIT has appointed one of its existing tenants, Minster Care Management, as the new tenant of this home at an initial rent of £414,000, giving a net initial yield of 7.2 per cent.
The unnamed property benefits from a new, unbroken 20-year lease, with rent subject to an annual upward-only review linked to the Retail Price Index, with a floor of two per cent per annum and an annual cap of four per cent.
In a related development, Impact Healthcare REIT has sold Heeley Bank, a 67-bed care home in Sheffield, which was acquired as part of a portfolio of four homes leased to MMCG in March 2020.
The sale at £1.68m was 29 per cent above the purchase cost of the home and 12 per cent above the carrying value at 30 June 2021.
