The UK arm of Swiss Life Asset Managers has acquired a care home on behalf of one of its pan-European healthcare real estate funds.

Swiss Life Asset Managers UK said it had acquired Norfolk House in Weybridge for £9.7m (€11.3m), reflecting a 5.8% net initial yield.

The manager said the deal represents the first of several planned investments on behalf of a pan-European healthcare fund managed from Paris.

Last month, Swiss Life changed the name of Mayfair Capital, which it acquired in 2016, to Swiss Life Asset Managers UK and said it expected to invest more in UK real estate markets in the future.

Jos Seligman, investment director at Swiss Life Asset Managers UK, said: “We are pleased to add Norfolk House to our UK portfolio of care home assets, especially as this acquisition was undertaken by a pan-European Swiss Life Asset Managers’ fund which had not previously invested in the UK.”

Norfolk House, comprising 64 ensuite bedrooms, is let to Care UK for a remaining 12 years.

“Norfolk House provides an optimum number of beds, modern specification and a flexible building fabric situated on a large site which could accommodate future improvements,” Seligman.

“The asset is well suited to the core to core-plus fund target returns. We intend to work with the tenant to undertake environmental improvements to the fabric of the building going beyond Swiss Life Asset Managers’ net-zero pathway commitments.”

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