Impact Healthcare buys £2.8m care home

Impact agrees £25m credit facility

Investment trust Impact Healthcare REIT has bought Yew Tree Care Centre in Redcar, North Yorkshire, for £2.8m from Monarch Alternative Capital LP.

The 76-bed nursing home, which opened in 2010, will be operated by Prestige Care Group.

The lease has a fixed 25-year term with no break clauses and a tenant option to extend it to 35 years at the end of year 20.

Rent will be subject to annual upward-only rent reviews linked to the retail prices index, with a floor of 2% per annum and a cap of 4% each year.

Prestige will pay an agreed amount each year to maintain the home and Impact will make a deferred performance-linked payment to the operator on the condition Prestige improves the care provided at the property and its financial performance.

Rent owed will increase based on the deferred payment amount.