Impact Healthcare REIT PLC Acquisition (9508O)
May 23 2018 - 2:01AM
UK Regulatory
TIDMIHR
RNS Number : 9508O
Impact Healthcare REIT PLC
23 May 2018
23 May 2018
Impact Healthcare REIT plc
(the "Company" and with its subsidiaries, the "Group")
FURTHER ACQUISITIONS
The Board of Directors of Impact Healthcare REIT plc (ticker:
IHR), the real estate investment trust which gives investors
exposure to a diversified portfolio of healthcare real estate
assets, is pleased to announce that the Group has acquired two care
homes with a combined total of 138 beds - Carnbroe Care Centre
("Carnbroe"), near Glasgow, and Grenville Court Care Home
("Grenville"), near Norwich - for a total consideration of GBP8.3
million (including costs).
Carnbroe was built in 2007 and offers 74 beds, including
specialised dementia care units. Grenville was built in 1997 with
64 beds and also offers dementia care. The homes were previously
operated by Alpha Care Management Services Ltd ("Alpha Care") and
are being sold by the current owners as part of their retirement
from the business.
The Company has agreed to enter into a new lease for each home
with Minster Care Group Limited ("Minster"). The terms of the two
new full repairing and insuring leases will be substantially the
same as the leases for the Group's existing Minster portfolio, and
will be reinforced by the existing Framework Agreement in place
with Minster. Each lease has a 20-year term with no break clauses
and an option to extend for a further two 10-year periods. The
total initial rent of GBP608,000 receivable under the leases will
be subject to annual upwards-only rent increases linked to the
Retail Prices Index ("RPI"), with a floor of 2% p.a. and a cap of
4% p.a.
Minster has agreed to commit to a minimum annual expenditure on
maintenance. In addition, Minster will also operate another care
home, previously operated by Alpha Care, which is owned by a third
party. The net initial yield and level of rent cover are in line
with the terms on which the Group acquired its seed portfolio and
in line with the Group's investment criteria and returns
profile.
The Board believes that the principal benefits that make these
care homes an attractive addition to the Company's portfolio
include:
-- the level of initial rent offers an attractive net initial
yield, combined with a high level of rent cover to ensure the rent
is sustainable; and
-- attractive asset management opportunities including the
re-opening of 15 of the 74 beds at Carnbroe, and a management
turnaround opportunity at Grenville with planning permission in
place to add further beds at Grenville once Minster has completed
the turnaround.
In addition, the Board is also pleased to confirm that the Group
has completed on the second of the three Prestige homes which
exchanged in January 2018, Roseville with 103 beds. In total so far
during 2018, the Company has added 366 operating beds to its
portfolio, a 14.5% increase on the number of beds as at 31 December
2017.
The Group has also agreed exclusivity on a number of further
acquisitions, continues to make progress in adding beds to its
existing portfolio through its programme of active asset management
and continues to pursue a strong pipeline of potential new
investment that are in line with our investment criteria and
returns profile.
The Company complies with the relevant provisions of the Listing
Rules ("LR") and has adopted a related party policy consistent with
LR 11. Minster is considered a related party under this policy and
entering into new leases for Carnbroe and Grenville constitutes a
smaller related party transaction as defined in LR 11.1.10. The
Board is satisfied that this transaction is fully compliant with
the Company's related party policy.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Impact Health Partners LLP via Newgate Communications
Mahesh Patel
Andrew Cowley
Winterflood Securities Limited Tel: 020 3100 0000
Joe Winkley
Neil Langford
Newgate Communications (PR Adviser) Tel: 020 7680 6550
James Benjamin Email: impact@newgatecomms.com
Anna Geffert
Patrick Hanrahan
Leena Patel
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 will have paid 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.
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.
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END
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