US REIT acquires Caring Homes portfolio

Griffin-American Healthcare REIT II has acquired Myriad Healthcare’s Caring Homes portfolio in a sale and leaseback agreement for £298.5m. Under the terms of the agreement, the 44 homes will be leased back to Myriad, operating as Caring Homes, under 35-year leases with annual rent increases with the lease obligations guaranteed by Myriad’s parent company and specialist care division. In return, the REIT will provide capital funding for new homes for older people that it will acquire once the schemes reach the required minimum occupancy levels and imputed rent coverage ratios. These developments will again be leased to Myriad Healthcare. Speechley Bircham were the legal advisors and Knight Frank were the property advisors. Myriad chief executive Paul Jeffery said: This will be a transformational event for our company with a partner which is as committed to growth in the private pay market as we are. We have built our success by providing high-quality care for elderly residents in the UK in first-rate facilities and locations. This partnership allows us to continue to execute this strategy and expand our footprint in the UK’s growing pay elderly care sector.’