LONDON (Alliance News) - Health-focused real estate investment trust Impact Healthcare REIT PLC said Tuesday it has acquired a 40-bed care home in County Durham for GBP1.4 million from Monarch Alternative Capital LP.
Impact bought Holly Lodge Care Home in Shildon - purpose-built in 2005 - for a net GBP1.4 million, equivalent to a net initial yield of 8.7%.
The home is operating at full capacity and is currently operated by an existing tenant of Impact, Careport Advisory Services Ltd.
Careport will continue to operate the home under a new 25-year fully repairing and insuring lease which has the tenant option of a 10-year extension. The lease is subject to annual, upward-only rent reviews in line with retail prices index. Increases have a 2% floor and 4% cap.
The acquisition is the second announced of four targeted transactions by Impact in late October. In total, these four acquisitions are expected to add more than 450 beds.
Shares in Impact were 1.5% lower at 101.00 pence on Tuesday.
Impact Health (IHR)