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LONDON (Alliance News) - Impact Healthcare REIT PLC said Monday it will acquire five Newcastle care homes from Monarch Alternative Capital LP.
The real estate investment trust has exchanged contracts with Monarch and will pay a total of GBP12.2 million for all five care homes, which have 218 beds between them.
Monarch invested GBP1.4 million to refurbish the properties, which were built between 1999 and 2007 and form part of a larger Monarch portfolio.
The homes have a 94% occupancy with one rated as "Requires Improvement" by the Care Quality Commission and the other four rated "Good".
Careport Advisory Services Ltd, which operates the care homes on Monarch's behalf, will continue to operate them after the acquisition. Impact has agreed to a new lease with Careport for each property.
In combination, initial rent on the properties will be GBP875,000 per year with Careport paying a minimum maintenance expense. Each lease is for 25 years, has no break option, and can be extended to 35 years.
Shares in Impact were up 0.5% at 102.99 pence on Monday.