Impact Healthcare REIT Buys Bristol Care Home For GBP4.9 Million

LONDON (Alliance News) - Impact Healthcare REIT PLC said on Monday it has acquired, in a sale and leaseback transaction, a care home in Bristol for GBP4.9 million.

The home operates as two units on one site: Fairview Court and Fairview House. It is being sold by its current owners as part of their retirement from the business.

On completion the home will be operated by Welford Healthcare Ltd. Impact Healthcare will enter into a new full repairing and insuring lease with Welford for an initial term of 25 years, with an option for Welford to extend to 35 years. Welford has committed to a minimum annual expenditure on maintenance.

The initial rent of GBP356,000 receivable under the lease is subject to annual, upward only rent reviews, increasing in line with the Retail Prices Index, with a floor of 2% per annum and a cap of 4%.

The level of initial rent agreed with Welford offers an attractive net initial yield, the company said, combined with a high level of rent cover to ensure the rent is sustainable.

Planning permission is in place to extend Fairview House and to link the two units. Once this work is completed, it will be possible to operate the home as one unit, offering 79 bedrooms.

The home is one of the target acquisitions identified by the company at the time of its fundraise completed in November.

Shares in Impact Healthcare were flat at 100.00 pence on Monday.