Impact Healthcare REIT has announced the £148m acquisition of 56 residential care homes providing 2,279 beds.
The homes are being leased initially for 20 years to Minster Group and Croftwood Group, for £11.7m a year, with the option to extend for further 10-year period, Property Week reported.
Rupert Barclay, non-executive chairman of Impact Healthcare REIT, said: “We are pleased to have completed the acquisition of the Seed Portfolio following the IPO in March 2017.
“This diversified operating portfolio of residential care homes is let to experienced operators for an initial term of 20 years, providing the Company with stable, secure cash flows from admission.
“This enables the Company to provide shareholders with regular, attractive, inflation-protected income with the potential for dividend and capital growth through active asset management as well as potential acquisitions.
“Impact Healthcare is a well-resourced and extensively networked care home investor well placed to capitalise on the highly fragmented market with a supply/demand imbalance that is continuing to grow.”
Impact said residential healthcare was a significant investment opportunity in the UK, owing to both increasing demand for various forms of care from a growing and ageing population and the current reduction in the supply of suitable assets for providing that care.