(Alliance News) - Impact Healthcare REIT PLC on Friday said it has exchanged contracts on a individual property to be leased to an existing tenant, adding that it has also completed the purchase of a portfolio of properties from subsidiaries of the Holmes Care Group.
The healthcare-focused real estate investor said it will buy St Peters House for GBP7.4 million, stating that the initial rent for the 62-room period property in Bury St Edmunds will be GBP555,000 reflecting a 7.5% yield.
It added it has appointed one of its existing tenants Welford Healthcare Ltd as the new tenant of St Peters House, which will leave Welford operating six homes for Impact with a total of 305 beds.
"The terms of the new repairing and insuring lease with Welford for the home are the same as Impact's standard lease terms, with a fixed term of 25 years and annual upward-only rent reviews linked to RPI and Welford has committed to a minimum annual expenditure on the maintenance of the home," the company said.
Separately, Impact Healthcare said it has completed the the acquisition of the Holmes Care portfolio, a deal which was initially announced in March.
Both the St Peters House transaction and completion of the Holmes Care acquisition were financed from the group's existing cash resources and available debt facilities.
Shares in Impact Healthcare were trading 0.2% higher at 99.20 pence each on Friday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Impact Health (IHR)