The
information contained in this announcement is restricted and is not
for publication, release or distribution in the United States of
America, any member state of the European Economic Area (other than
the Republic of Ireland or the Netherlands and then only to
professional investors in such jurisdictions), Canada, Australia,
Japan or the Republic of South Africa.
15 May 2024
Impact Healthcare REIT
plc
("Impact" or the "Company" or, together with its
subsidiaries, the "Group")
TRANSFER OF OPERATIONS OF
THREE CARE HOMES TO A NEW TENANT OPERATOR OF THE GROUP AND SMALLER
RELATED PARTY TRANSACTION
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, announces
that the Group has completed the transfer of three homes located in
Bradford (the "Bradford Portfolio") to a new tenant, We Care Group
("We Care"), on long-term leases. These homes have been
operated by Melrose Holdings Limited ("MHL") following their
transfer from the Silverline Group ("Silverline") as part of a
recovery plan first announced by the Group in June 2023.
Since acquiring Silverline's tenant
companies, MHL has stabilised the operation of the homes, including
the Bradford Portfolio. As a result, discussions have taken place
with potential long-term, third-party operators and the Board has
concluded that it is in the best interests of all the Company's
stakeholders to facilitate the transfer of the Bradford Portfolio
to We Care, providing a long-term future for the homes.
We Care is an experienced operator
with over 30 homes located throughout the North of England. As an
operator, it has significant experience with turnaround homes,
including in the Bradford submarket. We Care has committed to
make further investment in the homes and has agreed to the
inclusion of a Landlord option to extend the leases to 35
years.
The Company has granted a rent-free
period to We Care and lease incentives of £1.46 million of which
£0.25 million is additional cash to invest directly in the homes.
These incentives will enable We Care to complete the refurbishment
of the homes and are expected to be fully recovered over the life
of the leases. It is anticipated that the Bradford Portfolio will
resume paying rent in the first quarter of 2025.
The four remaining homes, located in
Scotland, that were transferred from Silverline continue to be
operated by MHL. The Investment Manager is making progress with its
negotiations to transfer these four homes to a new operator on
long-term leases.
MHL is wholly-owned by connected
parties of Mahesh Patel and as such the transfer of its Bradford
leases to We Care is a smaller related party transaction for the
purposes of Listing Rule 11.1.10R and this announcement is
therefore made in accordance with Listing Rule 11.1.10R(2)(c). As
per the requirements of Listing Rule 11.1.10 the Company has
obtained written confirmation from an FCA-approved sponsor firm
that it believes the transaction is fair and reasonable as far as
the shareholders of the Company are concerned.
Andrew Cowley, Managing Partner of
Impact Health Partners commented "I am
delighted that we have secured a new tenant for the three homes in
Bradford. This will provide a long-term partner and secure these
high quality and much needed homes to the benefit of both residents
and staff. We would like to thank Melrose for stepping in and
enhancing the operations in the homes over the last year, which
will secure value over the long term for our
shareholders"
FOR
FURTHER INFORMATION, PLEASE CONTACT:
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Impact Health Partners LLP
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Via H/Advisors Maitland
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Andrew Cowley
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David Yaldron
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Jefferies International Limited
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+44 20 7029 8000
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Tom Yeadon
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tyeadon@jefferies.com
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Ollie Nott
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onott@jefferies.com
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Winterflood Securities Limited
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+44 20 3100 0000
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Neil Langford
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neil.langford@winterflood.com
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Joe Winkley
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joe.winkley@winterflood.com
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H/Advisors Maitland (Communications advisor)
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impacthealth-maitland@h-advisors.global
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James Benjamin
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+44 7747 113 930
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Rachel Cohen
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+44 20 7379 5151
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Billy Moran
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+44 20 7379 5151
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The Company's LEI is
213800AX3FHPMJL4IJ53.
Further information on Impact
Healthcare REIT is available at www.impactreit.uk.
NOTES:
Impact Healthcare REIT plc acquires,
renovates, extends and redevelops high quality healthcare real
estate assets in the UK and lets these assets on long-term full
repairing and insuring leases to high-quality established healthcare operators which offer good
quality care, under leases which provide
the Company with attractive levels of rent
cover.
The Company aims to provide
shareholders with an attractive sustainable return, principally in
the form of quarterly income distributions and with the potential
for capital and income growth, through exposure to a diversified
and resilient portfolio of UK healthcare real estate assets, in
particular care homes for the elderly.
The Company's dividend policy is to
maintain a progressive dividend that is covered by adjusted
earnings.
The target total dividend
for the year ending 31 December 2024 is 6.95 pence
per share*, a 0.18 pence
increase over the 6.77 pence in dividends paid or declared per
ordinary share for the year ended 31 December 2023.
The Group's Ordinary Shares trade on
the main market of the London Stock Exchange, premium segment. The
Company is a constituent of the FTSE EPRA/NAREIT index.
* 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.