Impact Healthcare finalises £25m triple acquisition

Zina Fragkiadaki
June 1, 2022

Impact Healthcare REIT is acquiring three properties for £25 million plus transaction costs. The properties are let to care home provider Welford Healthcare, an existing tenant in the portfolio.

This investment will take Impact Healthcare’s relationship with Welford Healthcare to 12 care homes across England, with 646 beds.

The three care homes, one in Somerset and two in Devon, comprise 184 en-suite beds to the group’s portfolio, which will then total 134 properties with 7,316 beds.

The deal is expected to deliver initial annual rent of £1.7 million, reflecting a gross initial yield of 6.8%, the company said in a statement.

All of the acquisitions will be leased on Impact’s green leases, with fixed terms of 30 years and annual upward-only rent reviews linked to the Retail Price Index (“RPI”), with a floor of 2% p.a. and a cap of 4% p.a., with commitments to a minimum annual expenditure by the tenant on the maintenance of the care homes.

The REIT said its investment manager, Impact Health Partners, is also in exclusivity on several further projects and expects to make further announcements in the near future.

Jefferies International and Winterflood Securities advised on the transaction.

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