TIDMIHR
RNS Number : 5529B
Impact Healthcare REIT PLC
11 January 2018
11th January 2018
Impact Healthcare REIT plc
(the "Company" and with its subsidiaries, the "Group")
ACQUISITION OF CARE HOME PORTFOLIO
The Board of Directors of Impact Healthcare REIT plc (ticker:
IHR) is pleased to announce that the Group has exchanged contracts
to acquire in a sale and leaseback transaction a portfolio of three
purpose-built care homes in the North-East of England (the
"Portfolio") for a total consideration of GBP17 million (including
costs). Completion is conditional on, among other things,
regulatory approvals, and is expected to take place before the end
of the first quarter of 2018.
The Portfolio is being acquired from the Prestige Care Group
("Prestige"), a developer and operator of care homes with over 20
years' experience in the care industry. Prestige will continue to
operate the homes as the Group's tenant following completion. The
Group will enter into new full repairing and insuring leases with
Prestige in respect of each of the properties for an initial 20
years, with an option for the Group to extend to 30 years. Prestige
has committed to a minimum annual expenditure on maintenance.
The rents receivable under the leases are subject to annual,
upward only rent reviews, increasing in line with Retail Prices
Index, with a floor of 2% p.a. and a cap of 4% p.a.
The net initial yield and level of rent cover are in line with
the terms on which the Group acquired its seed portfolio shortly
following the Company's initial public offering.
Each of the care homes in the portfolio was purpose-built by
Prestige and the portfolio comprises a total of 234 high-quality
care beds and an additional 40 beds which present an asset
management opportunity. The care provided by Prestige at each of
the three homes is currently rated "Good" by the Care Quality
Commission.
The Portfolio consists of the following properties:
-- Sand Banks in Redcar, the home town of Prestige's founder,
was built in 2015 and opened at the end of that year. It was built
to a high standard with 77 large bedrooms set in well-landscaped
grounds. Since opening it has established a track record of
delivering good quality care while also delivering on its operating
and financial targets.
-- Roseville is in the heart of Ingleby Barwick, one of the
largest private residential housing estates in the country. It was
built to the same standards as Sand Banks with the first phase
delivered in 2010 and an extension in 2012 and today the home
offers a total of 103 bedrooms across the two units. Both homes
have good provision of well-appointed common areas for activities
and recreation.
-- Parkville, in central Middlesbrough consists of two units on
one site both of which are two-storey buildings offering a total of
94 beds. The Group will acquire the freehold of both units on
completion. The home was built by Prestige in 2005 and was
originally let to Southern Cross. However, after Southern Cross ran
into difficulties, Prestige took back control of the home in 2013.
Subsequently:
o The 54-bed unit was refurbished in 2013 and has been a popular
and well occupied care home since then.
o The 40-bed unit was closed awaiting further investment. The
Group and Prestige have agreed that Prestige will reinvest
sufficient capex to bring this home up to the same standards
internally as the newer homes in the Portfolio. Once this unit has
reopened and is operating successfully, the Group will make a
further, performance-based payment to Prestige. The rent due from
Parkville will increase in line with the amount of this deferred
payment.
The Portfolio is one of the target portfolios identified by the
Group at the time of the fundraise completed in November 2017. The
Group has also agreed exclusivity on three further acquisitions,
with three different tenants, and continues to evaluate a strong
attractive pipeline of potential investment opportunities.
Rupert Barclay, Chairman of Impact Healthcare REIT plc,
commented:
"We are pleased to announce the first of a number of potential
acquisitions that the Group expects to make in 2018. Prestige
brings high quality purpose-built care homes to the Group at an
attractive price, which will increase our total number of beds by
11%. Prestige is a new tenant for the Group and one with an
enviable reputation for being committed to providing high quality,
affordable care.
The Portfolio has the potential to deliver upside through active
asset management at Parkville. We are considering other projects
with Prestige, with whom we look forward to having a long and
successful partnership."
FOR FURTHER INFORMATION, PLEASE CONTACT:
Impact Health Partners via Newgate Communications
LLP
Mahesh Patel
Andrew Cowley
Winterflood Securities Tel: 020 3100 0000
Limited
Joe Winkley
Neil Langford
Newgate Communications Tel: 020 7680 6550
(PR Adviser) Email: impact@newgatecomms.com
James Benjamin
Anna Geffert
Lydia Thompson
The Company's LEI is 213800AX3FHPMJL4IJ53.
Further information on Impact Healthcare REIT is available at
www.impactreit.uk
NOTES:
The Group is a real estate investment trust ("REIT") which aims
to provide shareholders with an attractive return, principally in
the form of quarterly income distributions and with the potential
for capital and income growth, through exposure to a diversified
portfolio of healthcare real estate opportunities, in particular
residential care homes. The Group's investment policy is to
acquire, renovate, extend and redevelop high quality healthcare
real estate assets in the UK and lease those assets primarily to
healthcare operators providing residential healthcare services
under full repairing and insuring leases.
The Group is targeting an aggregate dividend of 6.0 pence per
share for the first 12 months from Admission which equates to a
yield of 6 per cent. per annum on the IPO Issue Price, payable in
quarterly instalments(1) .
The Group's Ordinary Shares were admitted to trading on the main
market of the London Stock Exchange, Specialist Fund Segment, on 7
March 2017.
(1) This is a target only and not a profit forecast and there
can be no assurance that it will be met and it should not be taken
as an indication of the Group's actual or expected future
results.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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