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LONDON (Alliance News) - Impact Healthcare REIT PLC said Friday it has bought two care homes for GBP11.6 million, reflecting a net initial yield of 7.6%.
The real estate investment trust focused on healthcare assets has acquired Croftbank House and Rosepark Nursing Home, both located in Uddingston, Scotland, with a combined total of 126 beds. The homes were bought from the Balmer family, who have owned and operated them since they were developed.
Impact Healthcare has entered into new leases with Renaissance Care (Scotland) Ltd for the two care homes. Renaissance has entered into two new fixed 25-year term leases with no break clauses and a tenant option to extend to 35 years at the end of year 15.
The rents receivable under the leases will be subject to annual upward-only rent reviews linked to the Retail Prices Index, with a floor of 2% per annum and a cap of 4% per annum. Renaissance has committed to a minimum annual expenditure on maintenance of the homes.
Shares Impact Healthcare were trading 1.1% lower at 101.40 pence each.