Impact Healthcare strikes duo of care home deals with Carlton Hall

Impact Healthcare REIT has struck a duo of deals to buy a care home near Lowestoft and entered into a prelet forward funding arrangement for another in Norwich. Carlton Hall group, a new tenant, will occupy both homes, which between them add 166 beds to Impact’s portfolio. The company owns 111 care homes and 6,141 beds. The deals, which are expected to lead to an investment of around £20.8m of capital, will increase the group’s contracted annual rent roll to £33.4m, an 8% increase on contracted annual rent at 31 December 2020 of £30.9m. The Lowestoft home is owned and operated by Carlton Hall, which is carrying out a sale and leaseback on the property. The site has an 86-resident capacity. The net purchase price before transaction costs is £10.3m and the initial annual rent is £650,000, reflecting a yield of 6.3%. It will be let on a fixed 30-year term with no break clause. Impact will also forward fund the construction of an 80-bed home in Norwich, which Carlton Hall will build. The development has planning in place and is due to be finished in 2023. The new home will be part of a care village, with phase one also comprising 19 bungalows. Carlton Hall will spend 10.5m on the project, including the land value. It is also prelet to Carlton Hall with a fixed 35-year term with no break clause. Initial rent is expected to be £750,000 per annum reflecting a yield of 7.1%, including a nine-month rent free period when the site is finished. To send feedback, e-mail alex.daniel@egi.co.uk or tweet @alexmdaniel or @estatesgazette