AEW fund lifts weighting to supported living via care homes acquisition

A UK fund managed by real estate asset manager AEW has increased its weighting to supported living with the acquisition of two care homes.

The manager said the AEW UK Real Return Fund (RRF), in a partnership with Prime Life, has bought Springhill Care Group and Birch Green Care Home in Lancashire for £11.5m (€12.8m) in total.

As part of the deal, health and social care services provider Prime Life acquired Springhill Care Group and simultaneously sold the freehold of two properties to RRF.

Springhill Care Centre, in Accrington, is registered for 116 residents, with 104 single bedrooms on a 3-acre site.

Birch Green Care Home, in Skelmersdale, comprises a purpose built nursing and residential home. The care home is registered for 74 clients.

The manager said in the current environment the fund is ”adopting a defensive strategy, targeting assets in the less cyclical areas” of the economy and in sectors driven more by demographics and social need.

AEW said this acquisition increases the fund’s weighting to supported living, care, education and the NHS to almost 40%.

Ian Mason, portfolio manager at AEW UK Real Return Fund, said: “The care home sector is driven by strong social and demographic needs and the UK is set for huge growth in its elderly population over the next few decades.

“As a result, it has strong market fundamentals and should remain resilient to any Brexit risks/uncertainties and AEW has taken the strategic decision to increase the fund’s weighting in this sector.”

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  • Springhill Care Group

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