Impact Healthcare REIT PLC Acquisition (8253X)
May 02 2019 - 1:00AM
UK Regulatory
TIDMIHR
RNS Number : 8253X
Impact Healthcare REIT PLC
02 May 2019
The information contained in this announcement is restricted and
is not for publication, release or distribution in the United
States of America, any member state of the European Economic Area
(other than the United Kingdom the Republic of Ireland or the
Netherlands), Canada, Australia, Japan or the Republic of South
Africa.
2 May 2019
Impact Healthcare REIT plc
("Impact" or the "Company" or, together with its subsidiaries,
the "Group")
ACQUISITION
The Board of Directors of Impact Healthcare REIT plc (ticker:
IHR), the real estate investment trust which gives investors
exposure to a diversified portfolio of UK healthcare real estate
assets, in particular residential care homes, is pleased to
announce that the Group has acquired four care homes and added a
high-quality new tenant. The net purchase price is GBP21.0 million,
reflecting a net initial yield of 7.4%.
The four homes are being acquired from subsidiaries of the Maria
Mallaband and Countrywide Group ("MMCG") in a sale and leaseback
transaction. MMCG will continue to operate the homes after
completion. The four homes have a combined total of 296 elderly
care beds, of which 270 are currently in operation. MMCG is a
top-10 operator of care homes across the UK, with the group
comprising 82 homes.
One home, Belmont House, is located in Harrogate. Opening in
2007, it has 100 beds, all of which have en suite bathrooms. The
other three homes are in Scotland. Wallace View in Stirling opened
in 2004 and has 60 beds, while Parksprings in Motherwell opened in
1997. It currently operates 70 beds and is bringing a further 26
beds into operation this year. All of the bedrooms in each home are
en suite. Thorntree Mews is an attractive converted period building
in Falkirk with a modern extension offering a total of 40 beds,
over two thirds of which are en suite.
There is a potential asset management opportunity at Parksprings
to convert a unit formerly leased to the NHS, which is currently
mothballed, into a complex care unit.
The homes are now on new leases that have fixed 25-year terms
with no break clauses and will be operated as part of MMCG's
Countrywide portfolio. The rents receivable under the leases will
be subject to annual upward-only rent reviews linked to the Retail
Prices Index, with a floor of 2% p.a. and a cap of 4% p.a. MMCG has
committed to a minimum annual expenditure on the maintenance of the
homes.
This investment comprises one of the six target transactions
that the Company included in its announcement on 15 April 2019 and
will be funded from the Group's current debt facilities.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Impact Health Partners LLP via Maitland/AMO
Mahesh Patel
Andrew Cowley
Winterflood Securities Limited Tel: 020 3100 0000
Joe Winkley
Neil Langford
RBC Capital Markets Tel: 020 7653 4000
Rupert Walford
Matthew Coakes
Maitland/AMO (Communications Adviser) Tel: 020 7379 5151
James Benjamin Email: impacthealth-maitland@maitland.co.uk
Andy Donald
The Company's LEI is 213800AX3FHPMJL4IJ53.
Further information on Impact Healthcare REIT is available at
www.impactreit.uk.
NOTES:
Impact Healthcare REIT plc is a real estate investment trust
("REIT") which aims to provide shareholders with an attractive
return, principally in the form of quarterly income distributions
and with the potential for capital and income growth, through
exposure to a diversified portfolio of UK healthcare real estate
opportunities, in particular residential care homes. The Group's
investment policy is to acquire, renovate, extend and redevelop
high quality healthcare real estate assets in the UK and lease
those assets primarily to healthcare operators providing
residential healthcare services under full repairing and insuring
leases.
The Group has now declared or paid eight quarterly dividends of
1.50 pence per share or greater since IPO on 7 March 2017.
The Company will seek to grow the target dividend in line with
the inflation-linked rental uplifts received by the Group under the
terms of the rent review provisions contained in the Group's leases
in the prior financial year.
The Group's Ordinary Shares were admitted to trading on the main
market of the London Stock Exchange, premium fund segment, on 8
February 2019.
This information is provided by RNS, the news service of the
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END
ACQUGUGWAUPBPPG
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