Impact on Christmas care home spree
Impact Healthcare has continued is Christmas care home acquisition spree with the purchase of another portfolio.
The group has bought 12 care homes in Fife for £37.5m.
The homes, which provide 480 beds, were owned and operated by Kingdom Homes, whose owners are retiring from the care home business. All of the homes will be operated by an existing group tenant, Holmes Care Group.
Impact Healthcare has continued is Christmas care home acquisition spree with the purchase of another portfolio.
The group has bought 12 care homes in Fife for £37.5m.
The homes, which provide 480 beds, were owned and operated by Kingdom Homes, whose owners are retiring from the care home business. All of the homes will be operated by an existing group tenant, Holmes Care Group.
The investment has been made initially by way of a loan to Holmes Care Group, which will allow it to complete the acquisition of Kingdom Homes immediately. The structure creates a number of benefits for all stakeholders, including enabling Holmes Care Group to take immediate operational control of the homes, thereby avoiding a potentially lengthy transition period while regulatory approvals are sought to register the operation of the homes in new legal entities, as well as other financial and operational efficiencies.
Once the regulatory approvals are received, Impact then has the option to acquire the property assets from Holmes Care Group. Impact will receive interest payments equal to 8.6% pa for the duration of the loan and, if either option is exercised, new 30-year leases on Impact’s standard terms have been pre-agreed with Holmes.
Initial rent under the new leases is set at £2.7m, reflecting a gross initial yield of 7.2%.
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