Knight Frank has advised on the acquisition of three care home sale and leasebacks on behalf of LRIS Investment Management and AEW.
The sale and leasebacks funded Prime Life’s acquisition of the Springhill Care Group business which operated Springhill Care Centre in Accrington, Birch Green Nursing Home in Skelmersdale and Riversway Nursing Home in Bristol, providing a total of 259 registered beds.
The business was acquired by Prime Life with the property assets sold to LRIS IM and AEW and simultaneously leased back to Prime Life on long leases with inflation linked reviews.
LRIS Investment Management acquired Riversway Nursing Home, Bristol, a 63-bed home, whilst AEW acquired Springhill Accrington, a 116-bed home, and Birch Green a 74-bed home.
The total transaction value was £22m.
Huw Holman, associate at Knight Frank, said: “Working with Prime Life, AEW and LRIS Investment Management led to a successful outcome for all, using the sale and leaseback investment strategy. Astute investors are capitalising on the opportunity to have diversified portfolios of high-yielding real estate assets, occupied by tenants on long-term leases.”
Adding: “The strength of the Springhill Care Group assets’ locations and occupier demand, coupled with excellent property fundamentals in providing long-term secure income, appealed to both the purchasers of the assets, in addition to the care home operators, so this deal ticked all of the boxes.”