Impact Healthcare REIT PLC Acquisition (7236I)
August 13 2019 - 2:00AM
UK Regulatory
TIDMIHR
RNS Number : 7236I
Impact Healthcare REIT PLC
13 August 2019
The information contained in this announcement is restricted and
is not for publication, release or distribution in the United
States of America, any member state of the European Economic Area
(other than the United Kingdom), Canada, Australia, Japan or the
Republic of South Africa.
13 August 2019
Impact Healthcare REIT plc
("Impact" or the "Company" or, together with its subsidiaries,
the "Group")
ACQUISITION
The board of Directors (the "Board") of Impact Healthcare REIT
plc (ticker: IHR), the real estate investment trust which gives
investors exposure to a diversified portfolio of UK healthcare real
estate assets, in particular care homes, is pleased to announce
that the Group has exchanged contracts to acquire two care homes
and added a high-quality new tenant. The net purchase price is
GBP12.9 million. The initial rent will be GBP950,000.
Baylham Care Centre is a 55-bed purpose-built care home, which
is currently rated Outstanding by the Care Quality Commission
(CQC). Barham Care Centre is a 43-bed care home, which is rated
Good by CQC. Both homes are near Ipswich.
The homes will be leased to a new operator for the Group, Optima
Care ("Optima"), our ninth tenant(1). Optima is a specialist health
and social care provider with experience in operating residential
dementia care homes for the elderly. Founded in 2004, Optima has
built an excellent reputation for providing high quality specialist
care, support and services. The two new leases are on Impact's
standard terms, with a fixed term of 25 years and rent subject to
annual upward-only reviews linked to the Retail Prices Index, with
a floor of 2% p.a. and a cap of 4% p.a. Optima has committed to a
minimum annual expenditure on the maintenance of the homes.
Barham was extended in 2017, when 17 bedrooms were added. There
is a further asset management opportunity to extend the home
through building 21 new bedrooms with full bathrooms, while
removing 11 bedrooms in an existing single storey extension, adding
a net 10 bedrooms to the home.
This investment comprises one of the six target transactions
that the Company included in its announcement on 15 April 2019.
The acquisition is in line with the Group's investment criteria
and returns profile.
The Group has agreed exclusivity on a number of further
acquisitions and continues to evaluate a strong pipeline of
potential investment opportunities and expects to announce further
acquisitions shortly.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Impact Health Partners LLP via Maitland/AMO
Mahesh Patel
Andrew Cowley
Winterflood Securities Limited Tel: 020 3100 0000
Joe Winkley
Neil Langford
RBC Capital Markets Tel: 020 7653 4000
Rupert Walford
Matthew Coakes
Maitland/AMO (Communications Adviser) Tel: 020 7379 5151
James Benjamin Email: impacthealth-maitland@maitland.co.uk
Andy Donald
The Company's LEI is 213800AX3FHPMJL4IJ53.
Further information on Impact Healthcare REIT is available at
www.impactreit.uk.
NOTES:
Impact Healthcare REIT plc is a real estate investment trust
("REIT") which aims to provide shareholders with an attractive
return, principally in the form of quarterly income distributions
and with the potential for capital and income growth, through
exposure to a diversified portfolio of UK healthcare real estate
opportunities, in particular residential care homes. The Group's
investment policy is to acquire, renovate, extend and redevelop
high quality healthcare real estate assets in the UK and lease
those assets primarily to healthcare operators providing
residential healthcare services under full repairing and insuring
leases.
The Company's intention is to pay a target dividend of 6.17
pence per share for the year to 31 December 2019(2) .
The Company will seek to grow the target dividend in line with
the inflation-linked rental uplifts received by the Group under the
terms of the rent review provisions contained in the Group's leases
in the prior financial year.
The Group's Ordinary Shares were admitted to trading on the main
market of the London Stock Exchange, premium segment, on 8 February
2019. The Company is a constituent of the FTSE EPRA/NAREIT
index.
(1) Minster and Croftwood (both subsidiaries of Minster Care
Group), Careport, Prestige, Renaissance, Welford, Maria Mallaband
Countrywide Group, NHS Cumbria and Optima.
(2) This is a target only and not a profit forecast. There can
be no assurance that the target will be met and it should not be
taken as an indicator of the Company's expected or actual
results.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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