Investor buys three Yorkshire care homes for £7.5m
Impact Healthcare REIT, a listed real estate investment trust, has acquired three care homes in Bradford from Victorguard Care.
The homes will be operated by Silverline Care, the Group’s 11th tenant. These homes together offer 182 bedrooms, all of them en-suite.
Impact Healthcare’s update explains: “Under previous management, the three homes being acquired went through a period of under-performance and Silverline has developed a clear plan to turn these around.
“Silverline operates other homes in Yorkshire, including one in Bradford.
“The Group has agreed to pay a net purchase price of £7.5m to the vendors, or £41,000 per bed, which reflects the homes’ recent trading performance rather than their potential.
“To support Silverline’s turnaround plan, we have committed £300,000 of capital expenditure into the homes and agreed a rent-free period of six months. The initial rent is £630,000 per annum, reflecting a yield of 8.1%.”
Bespoke Care has also today confirmed the sale of Victorguard Care to Silverline. The three, purpose-built care homes are: The Beeches, in Beacon Rd, Bradford; Willow Bank, in Bell Dene Road; and Laurel Bank, in Main Street, Wilsden, Bradford.
Acting on behalf of the vendors Bespoke Care managed the ‘off market’ sales process and confirmed the sale concluded a few days ago for an undisclosed sum.
The vendors Stephen and Joanne Walkden had built and established the care homes. When the Walkdens decided to retire they called upon Anita Allen, of Bespoke Care.
Stephen Walkden said: “We are very proud of our care homes, but the time had come to sell on. Over the years we had developed a good working relationship with Anita Allen and trusted her to work discretely sourcing a good purchaser for our business.
“She understood our concerns and worked extremely closely with us to identify a buyer. The sale was professionally managed by Bespoke Care with Jon Marriott of DWF Law in Leeds acting for the vendors, together with Alison Whalley of Naylor Wintersgill providing accountancy services. We thank them all for working so well together.”
Silverline Care chief executive, Tim Bolot, said: “We are delighted to have completed another transaction with Anita. The addition of these three homes is a further step in our plan to create regional operating clusters and we are seeking further operational opportunities in Yorkshire and also in close proximity to our Glasgow Support Office.”
Agent for the sellers were: Anita Allen of Bespoke Care in Sheffield; Solicitors for the sellers were: Jon Marriott, corporate partner of DWF Law LLP, Leeds office; Financial advisers for the sellers were: Alison Whalley of Naylor Wintersgill, Bradford; Solicitors for Impact REIT were: Travers Smith LLP, London; Solicitors for Silverline Care (operator) were: Hamlins LLP, London.
Today’s announcement by Impact Healthcare also includes news that it has exchanged contracts to acquire a further nine care homes in Scotland and has agreed to forward fund the construction of a new 94-bed care home in Hartlepool.
The REIT states that these transactions will add 13 care homes comprising 925 beds to its portfolio, which will then total 99 care homes and 5,253 beds (at 31 December 2019: 86 homes and 4,274 beds).
And they will increase the Group’s contracted annual rent roll to £28.2m, a 21.9% increase on contracted annual rent at 31 December 2019 of £23.1m.
These transactions will be financed from the Group’s existing cash resources and available debt facilities, of which £49.9m is currently undrawn.
