Impact Healthcare REIT has exchanged contracts on three acquisitions worth a total of £20.2m.
It has bought Holmesley Nursing Home in Sidmouth, Devon, three units adjacent to Cumberland Infirmary in Carlisle, Cumbria, and Old Prebendal House in Chipping Norton, Oxfordshire.
The purchases will be leased to two of the group’s existing tenants, Welford and Careport, and two medical units being bought are on existing leases to the NHS, adding an eighth tenant for the group.
Rent receivable under each of the new care home leases will be subject to annual upward-only rent reviews linked to the retail price index, with a floor of 2% and a cap of 4% per annum.
This latest announcement comes on the back of Impact adding four care homes to its portfolio last month in a sale and leaseback deal with Maria Malland and Countrywide.
As a result of the deals and rent increases, Impact’s annualised contracted rent has risen by 19% to £21.3m, up from £17.8m at the end of 2018.
Holmesley is a care home with 49 of its 52 bedrooms providing en-suite facilities. It is being bought for £5.9m and the initial annual rent will be £450,000.
The three units adjacent to Cumberland Infirmary, include Kingston Court, a care home operated by Careport that offers 74 beds, all with en-suite bathrooms.
The other two units are Reiver House, which is a cancer out-patient facility and a surgery used to provide orthodontic care. Both are leased to NHS Cumbria University Hospital NHS Trust on leases that have annual consumer price index uplifts.
A total of £9.5m is being paid for the three units, with initial annual rent due of £365,000 from Careport and £302,000 from the NHS.
Old Prebendal House is a 37-bed care home, with an adjacent development of senior living units comprising 16 apartments and four cottages. Careport has been appointed as its tenant.
Impact has committed an additional £750,000 to modernise the interior of the home. It paid £4.75m for the property and the initial annual rent due is £330,000, which will increase to £390,000 once modernisation works have been completed.
A combination of the three acquisitions and the full repayment of the group’s revolving debt facilities means the group will have deployed over half the proceeds from its oversubscribed £100m equity fundraise that closed last month.
Impact said it has agreed exclusivity on further purchases and continues to evaluate a strong pipeline of potential investment opportunities.