AEW UK Long Lease REIT plc has announced the acquisition of two residential care home properties in the West Midlands and East Riding for £10.3m. Both were acquired from 90 North Real Estate Partners LLP and are let to Prime Life Limited, a care services provider operating a total of 57 care homes, based mainly in Lincolnshire and the East Midlands.
The Lyndon Croft Care Centre, located on Ulleries Road, Solihull, was acquired for £6.2m. It provides 52 beds for those with needs associated to old age and dementia. The property provides an unexpired lease term of 31 years. The acquisition price reflects a net initial yield of 5.5%.
Westerlands Care Village, located on Elloughton Road, Brough, was purchased for £4.1m and comprises 62 beds in two adjacent homes. Elloughton House provides residential and nursing care as well as care of those with dementia needs. Brough House provides specialist memory care for high dependency residents. The acquisition price reflects a net initial yield of 6.0% and the properties have an unexpired lease term of 31 years. 90 North was advised by Gerald Eve. AEW was advised by Knight Frank.
Alex Short, Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company said: “These latest acquisitions demonstrate our commitment to investing in specialist, underrepresented sectors in the property market. Care homes such as these, with their long leases and sustainable income profile, are important additions to AEW UK Long Lease REIT’s investment portfolio.”
The transaction increases the total amount invested by AEW UK Long Lease REIT plc since June to £41m. In addition to this, the Manager has a further 4 assets under offer and expects to make additional announcements in the coming weeks.
AEW UK Long Lease REIT plc raised £80.5m from institutional and retail investors at its IPO in June and at that time it stated its expectation to substantially invest the net proceeds within nine months of listing. The Company is targeting an annual dividend of 5.5 pence per share paid quarterly, once fully invested and levered, with an ambition to grow in line with UK inflation thereafter.