Impact Healthcare invests £8.1m in three Scottish homes

Impact Healthcare REIT is acquiring three purpose-built care homes in and around Glasgow for £8.1 million plus transaction costs. The properties are let to care home provider Silverline, an existing tenant in the portfolio.

The deal is expected to deliver initial annual rent of more than £627,000, reflecting a gross initial yield of 7.75%, the company said in a statement.

The three homes comprise 155 beds, all of which are en-suite. The transaction will increase Impact Healthcare’s portfolio to a total of 131 care homes and 7,129 beds.

The group said Silverline will enter into Impact’s “new improved green leases” with fixed 25-year terms and no break clauses. The rents receivable under the leases will be subject to annual upward-only rent reviews linked to RPI, with a floor of 2% and a cap of 4% per annum.

Silverline has also committed to a minimum annual expenditure on the maintenance of the care homes.

Following the completion of the transaction, which is subject to re-registration with the Care Inspectorate, Silverline will be leasing seven care homes from Impact with 398 beds.

The REIT said its investment manager, Impact Health Partners is in developed legal discussions on several projects and expects to make further announcements soon.

Jefferies International and Winterflood Securities advised on the transaction.

Date published: April 19, 2022

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