Legal & General Property (LGP) has agreed to forward-fund and purchase five care homes in Suffolk with Care UK for £31 mln (€38 mln), representing a net initial yield of 6.75%.
Legal & General Property (LGP) has agreed to forward-fund and purchase five care homes in Suffolk with Care UK for £31 mln (€38 mln), representing a net initial yield of 6.75%.
The development represents the second phase of Suffolk County Council’s deal with Care UK, a provider of health and social services, to outsource care services for the elderly.
Located in Bury St Edmunds, Eye, Stowmarket and Ipswich, each of the homes will provide between 60 and 80 beds, in addition to an on-site day centre.
On completion, each property will be let to Care UK on a new 30-year lease with annual rental increases, and will be underpinned by Suffolk County Council’s 25-year contract. Delivery is planned between autumn 2014 and spring 2016.
Funded on behalf of LGP’s Managed Property Fund, the deal brings L&G's investment into the care home sector to over £100 mln, having recently completed the acquisition of 13 care homes let to Methodist Homes for a total of just over £70 mln.
Gerald Eve acted for LGP and Colliers advised Care UK.
