Gerald Eve has recently completed the sale of three care homes, with a combined £43 million in value, bringing their total Care UK related transactions over the past 9 months to £100m.
In that time the business accounted for 461 beds over 7 homes with an average value of £217k per bed. This means Gerald Eve has now completed almost £200m of Care UK related disposals and acquisitions in the past 2 years, comprising 14 homes and just under 1000 beds.
Representing Pension Fund clients, the three most recent sales’ transactions completed at the end of January and comprised:
Field Lodge in St Ives, Cambridge, with 72 beds, let on an FRI lease to Care UK with over 23 years unexpired and annual RPI linked rent reviews (1 to 5%), sold for £17.8 million at a yield of 5.74%.
Perry Manor, Worcester, with 82 beds, let on an FRI lease to Care UK with over 25 years unexpired and annual RPI rent reviews (1 to 4%), sold for £17.11 million at a yield of 5.65%.
Larkland House, Ascot, with 55 beds, let on an FRI lease to Care UK with 12 years unexpired and annual RPI rent reviews (0 to 4%), sold for £8.0 million at a yield of 6.52%.
The three recent deals come fast on the heels of Gerald Eve’s Project Mabel, Care UK portfolio, sale in the summer of last year comprising 3 homes with 188-beds let on FRI leases with around 26 years remaining and a rent of over £2.5m pa with annual RPI rent reviews (1 to 4%). Gerald Eve represented a Pension Fund client and sold the portfolio to Royal London Asset Management for c.£47.3 million at a yield of just better than 5%.
Richard Lines, Partner, Capital Markets said, “Our success demonstrates the unrivalled integration of our healthcare brokerage and consultancy teams. I am incredibly proud of what we have achieved for clients over this period. There’s little doubting liquidity in the market with a combination of an ageing demographic and long-term, inflation linked, income making this an attractive asset class for investors. Rental security and rent cover are key ingredients and our ability to accurately underwrite the assets has supported both the sell and buy side mandates”.
