Impact Healthcare REIT plc Acquires Saffron Court
Further to the acquisition of the Seed Portfolio on 4 May 2017, Impact Healthcare REIT plc (ticker: IHR) is pleased to announce that the Company has completed the acquisition of Saffron Court, Leicester for a total consideration of £3.4 million, reflecting a net initial yield of 7.7%. The acquisition was funded through the Company's cash resources.
Saffron Court comprises a care home with 48 beds and 25 associated assisted living flats. The terms of the lease are substantially the same as the leases for the Seed Portfolio with a 20-year term, an option to extend for a further 10 years and annual upwards-only rent increases linked to RPI with a floor of 2% and a cap of 4%.
The Company entered into non-binding heads of terms to acquire Saffron Court at the time of the IPO as set out in the prospectus published by the Company on 24 January 2017.
Rupert Barclay, non-executive Chairman of Impact Healthcare REIT plc, commented:
"We are pleased to have completed the acquisition of Saffron Court on the terms set out at our IPO. This investment, along with the Seed Portfolio acquired on 4 May 2017, should provide the Company with stable and secure cash flows that support the Company's dividend policy."