Aedifica invests €126m in care home portfolios

Le Petit Bosquet care home, Jersey

European healthcare real estate investment trust Aedifica has invested £58 million in a portfolio of four care homes in Jersey and one on the Isle of Man, and €57 million in three care homes in Ireland.

Jersey and Isle of Man

The Jersey and Isle of Man portfolio comprises two modern, purpose-built care homes, two conversions from former hotels and a long-standing care campus. Three of these sites will undergo extension and internal redevelopment works to provide additional bedrooms and communal living areas. The extension works are expected to be completed next year and together the homes will accommodate 283 residents in fully en suite single bedrooms.

The care homes are operated by LV Care Group, a care group on the Channel Islands with 237 beds in six care homes in Jersey and Isle of Man. The homes are let on the basis of new 25-year triple net leases. The initial net rental yield amounts to approx. 6%.

At the same time European care group giant Emera Group, which operates eight Aedifica sites in Belgium and Ireland, acquired an equity stake in the operations of LV Care.

Bruce Walker, country manager of Aedifica UK, said: This transaction will further strengthen our position and visibility in the British market, increasing our portfolio in the United Kingdom (including the Crown dependencies Jersey and Isle of Man) to over €1 billion upon completion of all development projects.”

Connell Consulting produced the vendor commercial due diligence to support the sale of LV Care Group to Aedifica and Emera. Carey Olsen acted as lead advisor on the sell side. Cains provided local corporate law and real estate advice in the Isle of Man.

Appleby acted as lead advisor to Aedifica on its acquisition of the care homes in Jersey and the Isle of Man.

Ireland

Dundalk Nursing Home in Ireland

The three care homes in Ireland were completed earlier this year and are located in Dundal, Duleek and Riverstick. They accommodate up to 346 residents in spacious en suite bedrooms tailored to suit the needs of elderly people requiring continuous care.

The homes will be operated by private healthcare provider Silver Stream Healthcare Group, which operates more than 400 beds in eight residential care homes in Ireland and provides residential care, dementia care and rehabilitation care to the elderly.

As is customary in Ireland, the care homes will be let on the basis of new irrevocable 25-year triple net leases that are fully indexed to the consumer price index. The initial net rental yield will amount to approximately 5%.

Date published: April 4, 2022

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