AXA Investment Managers – Real Assets has announced its £15.75m acquisition of Knebworth Care Home in Hertfordshire.
The deal was completed on a sale and leaseback agreement over a 30-year period with Care UK.
Fund manager Ian Pollard told Care Home Professional: “We are delighted to have been able to buy this asset for our fund. Demographics are the big driving force to have a look at this sector and at local level this is a very attractive care home in an affluent part of the UK, which is undersupplied for good quality care home products. I think there will be very good demand for this particular asset on a long term basis.”
A Care UK spokesperson added: “We are pleased to welcome the team working at Knebworth to the Care UK family and we look forward to getting to know the residents and their families and friends.
“Knebworth care home was a natural fit in terms of the quality of the homes that we have added to our portfolio in recent years.”
AXA has a further two care home investments in its portfolio with large providers in the South East, including another Care UK home, which are both let on long term leases.
Completed in 2012, Knebworth is a freehold, purpose-built, high-specification care home comprising 69 rooms over three storeys, each providing separate care units with communal areas and balconies.
Communal facilities include a bar, café, lounge with cinema room, kitchen and staff facilities, as well as level access communal gardens and on-site parking.
Ian added: “There’s strong investor demand for care homes at the moment from funds that have a requirement to invest in long term income streams. What we like about this sector is that the operators are prepared to take long term leases because they can see that this is a very sustainable business. They will sign the kind of long-term inflation linked rents that are attractive for our fund. Investment demand is very good for the good quality care homes of which there is a shortage of.”