Impact Healthcare REIT PLC Acquisition (8382I)
26 March 2018 - 5:00PM
UK Regulatory
TIDMIHR
RNS Number : 8382I
Impact Healthcare REIT PLC
26 March 2018
26 March 2018
Impact Healthcare REIT plc
(the "Company" and with its subsidiaries, the "Group")
ACQUISITION OF A CARE HOME IN BRISTOL
The Board of Directors of Impact Healthcare REIT plc (ticker:
IHR) is pleased to announce that the Group has acquired, in a sale
and leaseback transaction, a care home in Bristol for a total
consideration of GBP4.9 million (including costs).
The home operates as two units on one site: Fairview Court and
Fairview House. It is being sold by its current owners as part of
their retirement from the business. On completion the home will be
operated by Welford Healthcare Limited ("Welford"), which is owned
and managed by Peter Madden, a high quality operator with an
established track record of successfully managing and adding value
to care homes. The Group will enter into a new full repairing and
insuring lease with Welford for an initial term of 25 years, with
an option for Welford to extend to 35 years. Welford has committed
to a minimum annual expenditure on maintenance.
The initial rent of GBP356,000 receivable under the lease is
subject to annual, upward only rent reviews, increasing in line
with the Retail Prices Index, with a floor of 2% p.a. and a cap of
4% p.a.
Fairview Court was built by the vendors in 2006 with 49 single
bedrooms, all are en-suite, providing nursing with dementia care.
Fairview House is a 22-bed unit in a period building, providing
residential care. Both units are rated "Good" by the Care Quality
Commission and are operating at or near full capacity.
The Board believes that the principal benefits that make this
care home an attractive addition to the Company's portfolio
include:
-- the level of initial rent agreed with Welford offers us an
attractive net initial yield, combined with a high level of rent
cover to ensure the rent is sustainable;
-- a clear path to increase the rent through a programme of
active asset management. Planning permission is in place to extend
Fairview House and to link the two units. Once this work is
completed, it will be possible to operate the home as one unit,
offering 79 bedrooms, all en-suite and refurbished to a high
standard; and
-- the addition of a dynamic new tenant, with whom we intend to do further business.
The home is one of the target acquisitions identified by the
Group at the time of the fundraise completed in November 2017 and
is in line with the Group's strict investment criteria and returns
profile. The Group has also agreed exclusivity on a number of
further acquisitions, and continues to evaluate a strong attractive
pipeline of potential investment opportunities.
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
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 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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