Knight Frank Healthcare team has sold a ground-breaking ground rent portfolio to Alpha Real Capital for £30 mln (€39 mln) at a net initial yield of 3.4%.
Knight Frank Healthcare team has sold a ground-breaking ground rent portfolio to Alpha Real Capital for £30 mln (€39 mln) at a net initial yield of 3.4%.
The deal was carried out on behalf of CareTech Holdings, a major UK provider of specialist social care services.
The portfolio consists of 41 care facilities, on a term of 150 year FRI ground lease, predominantly located across London and the South East.
'We operate in a growing and fragmented market in which the regulatory environment is driving consolidation and creating significant, earnings-enhancing opportunities,' said Farouq Sheikh, CareTech Holdings. 'We are delighted to enter this non-dilutive ground rent agreement with Alpha to raise £30 mln in cash, to invest in the development of our business at a very attractive yield. The transaction also underpins the valuation of our freehold portfolio which is in excess of our book cost.'
He noted that ground rent transactions are new to the care sector but have been used extensively in the hotel and leisure industry. 'We have worked closely with the healthcare team at Knight Frank to achieve this excellent outcome for our shareholders.'
