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(Alliance News) - Impact Healthcare REIT PLC on Monday said it has completed the acquisition of a property portfolio and exchanged contracts to acquire a second portfolio.
The healthcare-focused real estate investor also said it has entered into a pre-let forward funding arrangement with an existing tenant.
Impact has bought three homes in Bradford from Victorguard Care Ltd for a net purchase price of GBP7.5 million. The three homes will be operated by Silverline Care, Impact said.
The company has committed GBP300,000 of capital expenditure into the homes and agreed a rent-free period of six months. The initial rent is GBP630,000 per annum, reflecting a yield of 8.1%.
London-based Impact also exchanged contracts to acquire nine homes in Scotland, which are currently owned and operated by subsidiaries of the Holmes Care Group. The net purchase price before transaction costs is GBP47.5 million and the initial rent is GBP3.5 million, reflecting a yield of 7.4%.
Impact will pay up to GBP3.0 million based on the performance of the portfolio in the year to the end of March 2021, in exchange for an annual rent increase of up to GBP225,000.
Impact added it has agreed to forward fund the construction of a 94-bed care home in Hartlepool, to be built by a subsidiary of existing tenant Prestige Group. Prestige will build the home for GBP6.1 million.
Impact has pre-leased the home to Prestige and initial rent is expected to be GBP475,000 annually, reflecting a yield of around 7.8%.
The transactions will be financed from Impact Healthcare's existing cash resources and available debt facilities, of which GBP49.9 million is currently undrawn.
All of the acquisitions will be leased with fixed terms of 25 years and annual upward-only rent reviews linked to the retail price index, Impact said, adding the transactions will increase the its contracted annual rent roll to GBP28.2 million from GBP23.1 million recorded as at the end of 2019.
The stock was trading 2.6% lower at 103.20 pence each on Monday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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