LONDON: 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, has recently exchanged contracts to acquire three purpose-built care homes in and around Glasgow with an existing Group tenant.
Once completed, these transactions are expected to deliver the following benefits to the Group:
· enable the Company to deploy £8.1 million of capital, plus transaction costs;
· the initial annual rent has been agreed at £627,750, reflecting an accretive gross initial yield of 7.75%;
· will add three care homes comprising 155 beds, all en-suite, to the Group’s portfolio, which will then total 131 care homes and 7,129 beds (at 31 December 2021: 124 homes and 6,720 beds);
· EPC ratings of English equivalent B on one home and English equivalent EPC C on two homes with a strategy to bring these two homes to English equivalent EPC B; and
· Silverline will enter into Impact’s new improved green leases (the “Group’s standard lease”) with fixed 25-year terms with no break clauses. The rents receivable under the leases will be subject to annual upward-only rent reviews linked to RPI, with a floor of 2% p.a. and a cap of 4% per annum. Silverline has committed to a minimum annual expenditure on the maintenance of the care homes.
Completion is subject to re-registration with the Care Inspectorate and will be operated by an existing Group tenant, Silverline, and take the Group’s total care homes leased to Silverline to seven with 398 beds.
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.
