London real estate firm funds new North East care home following acquisitions

A London real estate investment trust has announced that it plans to fund a new care home following the acquisition of several new properties.

Impact Healthcare reported that it has agreed to forward fund the construction of a care home in Hartlepool.

This comes with the news that it has acquired various new properties - nine of Holmes Care’s fourteen locations in Scotland, as well as three Bradford properties from Victorguard Care.

The transactions will enable the company to deploy £61.1m of capital, and will bring its total care homes up to 99.

This will also increase the company’s annual rent roll 21.9 per cent, from £23.1m to £28.2m.

The company said: “The group has agreed to forward fund the construction of a new 94-bed care home in Hartlepool, to be built by a subsidiary of Prestige - an existing tenant of the group.

“The development has planning in place and is targeting completion in 12 months.

“Prestige has a strong track record of building care homes to a high standard in the North East, three of which the group already owns.

“Prestige has committed to build the home for a fixed price of £6.1 million, including the value of the land.

“The company has pre-leased the home to Prestige and it will fall under the group’s existing framework agreement with Prestige.”

Commenting on the deals overall, the company added: “These transactions will be financed from the group’s existing cash resources and available debt facilities, of which £49.9m is currently undrawn.

“The group is at an advanced stage on a number of other potential transactions and expects to make further announcements in due course.”