TIDMIHR
RNS Number : 9957X
Impact Healthcare REIT PLC
04 September 2020
The information contained in this announcement is restricted and
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4 September 2020
Impact Healthcare REIT plc
("Impact" or the "Company" or, together with its subsidiaries,
the "Group")
ACQUISITIONS AND INVESTMENT PIPELINE UPDATE
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 care homes, is pleased to announce that the
Group has exchanged contracts on an individual property to be
leased to an existing tenant and that it has also completed the
acquisition of the previously exchanged Holmes Care Portfolio.
St Peters House
The Group has exchanged contracts to acquire St Peters House for
a net consideration of GBP7.4 million. The initial rent will be
GBP555,000, reflecting a yield of 7.5%.
St Peters House is an attractive period property which has been
substantially extended and is now largely purpose-built, providing
62 single en-suite bedrooms. It is located in an affluent area
close to the town centre of Bury St Edmunds and is currently rated
as Outstanding by CQC.
The Group has agreed to appoint one of its existing tenants,
Welford Healthcare Limited ("Welford"), as the new tenant of St
Peters House, which will leave Welford operating six homes for
Impact with a total of 305 beds and strong rent cover above 2 times
across this portfolio. The terms of the new repairing and insuring
lease with Welford for the home are the same as Impact's standard
lease terms, with a fixed term of 25 years and annual upward-only
rent reviews linked to RPI and Welford has committed to a minimum
annual expenditure on the maintenance of the home.
The acquisition further enhances the Group's geographic
diversification and is in line with its investment criteria and
returns profile.
Holmes Care
On 9 March 2020, the Group announced the exchange of contracts
on the nine Holmes Care homes, with completion subject to the
required regulatory approvals from The Care Inspectorate in
Scotland. These have now been received and the deal completed on 28
August 2020, making Holmes Care Group the Company's 11(th) tenant
(1) .
Financing and pipeline
The St Peters House transaction and completion of the Holmes
Care acquisition are financed from the Group's existing cash
resources and available debt facilities and the Group remains well
capitalised, with a strong balance sheet and has significant
liquidity and headroom, with 100% collection of rent due for the
year to date .
When the Company paused new acquisitions in March, the Group had
a strong pipeline of potential investments and it is now
re-engaging on certain acquisitions along with new opportunities,
some of which are at an advanced stage. The Group expects to make
further announcements in due course.
Notes
1 Minster, Croftwood, (both subsidiaries of Minster Care Group),
Careport, Prestige, Renaissance, Welford, Maria Mallaband
Countrywide Group, NHS Cumbria, Optima, Holmes Care and Silverline
Care.
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 Tel: 020 7379 5151
Adviser) Email: impacthealth-maitland@maitland.co.uk
James Benjamin
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 care homes for the elderly. 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 Company has a progressive dividend policy with a target to
grow its annual aggregate 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 segment, on 8 February
2019. The Company is a constituent of the FTSE EPRA/NAREIT
index.
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