Impact Healthcare acquires two new care homes in Glasgow

2nd Nov 2018 10:55

(Sharecast News) - Impact Healthcare has acquired two new care homes in Glasgow for £11.6m, reflecting an initial yield of 7.6%.The London-listed specialist fund said the Croftbank and Rosepark nursing homes, located in Uddingston to the south-east of Glasgow, comprised one of the four target transactions the company had included in its announcement on 24 October, which would add in excess of 450 beds.Impact purchased the homes from the Balmer family, who had owned and operated them since they were developed, and had also entered into new leases with Renaissance Care, one of Scotland's leading care home operators, currently operating 12 further homes across Scotland.Renaissance entered into two new fixed 25-year term leases with no break clauses and a tenant option to extend to 35 years at the end of year 15.Impact said rents receivable under the leases would 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%. Renaissance committed to an undisclosed minimum annual expenditure on maintenance of the homes.As of 1050 BST, Impact shares had slipped 0.83% to 101.40p.