TIDMIHR
RNS Number : 5681B
Impact Healthcare REIT PLC
10 June 2019
10 June 2019
Impact Healthcare REIT plc
("Impact" or the "Company" or, together with its subsidiaries,
the "Group")
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 UK healthcare real estate
assets, in particular care homes, is pleased to announce that the
Group has recently exchanged contracts on three acquisitions,
detailed below.
These acquisitions comprise a total initial investment of
GBP20.2 million, plus transaction costs. Once completed, these
acquisitions, plus the acquisition of four homes from Maria
Mallaband Countrywide Group announced on 2 May 2019 and rent
increases achieved so far in 2019, will grow the Group's annualised
contracted rent by 19% to GBP21.3 million, up from GBP17.8 million
at 31 December 2018.
The three care homes being acquired will be leased to two of the
Group's existing tenants, Welford and Careport, and the two medical
units being acquired are on existing leases to the NHS, adding an
eighth tenant for the Group. Each of the investments has a strong
occupancy record.
The rent receivable under each of the new care home leases will
be subject to annual upward-only rent reviews linked to the Retail
Prices Index, with a floor of 2% p.a. and a cap of 4% p.a. The
tenants have committed to a minimum annual expenditure on
maintenance of each care home.
These three acquisitions are in line with the Group's investment
criteria and returns profile.
Through the combination of these three acquisitions and the full
repayment of the Group's revolving debt facilities, the Group will
have deployed over half the proceeds from the oversubscribed GBP100
million equity fundraise which closed on 10 May 2019.
The Group has agreed exclusivity on a number of further
acquisitions and continues to evaluate a strong pipeline of
potential investment opportunities.
Holmesley Nursing Home
Holmesley is a care home in Sidmouth, Devon, with 49 of its 52
bedrooms providing en-suite facilities. It is being acquired for a
net purchase price of GBP5.85 million and the initial annual rent
will be GBP450,000.
The existing owner is fully exiting its interest in Holmesley,
and the Group has agreed to appoint one of its existing tenants,
Welford, as the new tenant. Welford has entered into a new 25-year
lease on Impact's standard terms, as detailed above.
Completion will take place as soon as regulatory approvals from
the CQC for the change of operator have been received.
Kingston
The Group is acquiring three units adjacent to the Cumberland
Infirmary, the main general hospital in Carlisle. One unit,
Kingston Court, is a care home offering 74 beds, all with en-suite
bathrooms.
The care home is currently operated under a management contract
by Careport, one of the Group's existing tenants. The management
contract has been replaced with a new 25-year lease to Careport on
Impact's standard terms, as detailed above.
The other two units are Reiver House, currently used as a cancer
out-patient facility, and a surgery used to provide orthodontic
care. Both are leased to NHS Cumbria University Hospital NHS Trust
on leases which have annual CPI uplifts and have four years and six
years respectively left to run. The Investment Manager believes
that in the medium-term, and through working in partnership with
the NHS, both units have asset management potential.
The total net consideration being paid for all three units is
GBP9.5 million, with initial annual rent due of GBP365,000 from
Careport and GBP302,000 from the NHS. Completion took place on
exchange.
Old Prebendal House
Old Prebendal House is a 37-bed care home in Oxfordshire, with
an adjacent development of senior living units comprising 16
apartments and four cottages (all held on long-term leases by their
occupiers). Original elements of the building date back to the
15(th) century and were converted and extended to their current use
in 1990.
The existing owner is fully exiting its interest in Old
Prebendal House, and the Group has agreed to appoint Careport as
the new tenant. Careport has entered into a new 25-year lease on
Impact's standard terms, as detailed above.
The home currently enjoys a good reputation in its affluent
market. However, the Group has committed an additional GBP750,000
of capital expenditure to modernise fully the interior of the home.
The initial net consideration being paid to the vendor is GBP4.75
million and the initial annual rent due from Careport is
GBP330,000, which will increase to GBP390,000 once the asset
management works have been completed.
Completion will take place as soon as regulatory approvals from
the CQC for the change of operator have been received.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Impact Health Partners LLP via Maitland/AMO
Mahesh Patel
Andrew Cowley
Winterflood Securities Limited Tel: 020 3100 0000
Joe Winkley
Neil Langford
RBC Capital Markets Tel: 020 7653 4000
Rupert Walford
Matthew Coakes
Maitland/AMO (Communications Tel: 020 7379 5151
Adviser) Email: impacthealth-maitland@maitland.co.uk
James Benjamin
Andy Donald
The Company's LEI is 213800AX3FHPMJL4IJ53.
Further information on Impact Healthcare REIT is available at
www.impactreit.uk
NOTES:
Impact Healthcare REIT plc 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 UK 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 Company's intention is to pay a target dividend of 6.17
pence per share for the year to 31 December 2019(1) .
The Company will seek to grow the target dividend in line with
the inflation-linked rental uplifts received by the Group under the
terms of the rent review provisions contained in the Group's leases
in the prior financial year.
The Group's Ordinary Shares were admitted to trading on the main
market of the London Stock Exchange, premium fund segment, on 8
February 2019.
(1) This is a target only and not a profit forecast. There can
be no assurance that the target will be met and it should not be
taken as an indicator of the Company's expected or actual
results.
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END
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