PGIM Real Estate has emerged as the buyer of a portfolio of six modern purpose-built care homes in the UK from LGIM for just over £70 mln (€84 mln).
The portfolio comprises 430 bedrooms and is single let to care home operator, Care UK, with a weighted average unexpired lease term (WAULT) of 23 years. The leases are subject to annual RPI rent reviews, subject to a collar and cap of 0-5% pa.
Across the portfolio, five of the care homes are located within East Anglia, with 41% of the beds subject to a block contract agreement with Suffolk County Council.
LGIM forward funded the five homes in 2013; they were developed in conjunction with Suffolk County Council to replace the area’s outdated homes and provide essential continuity of care for the region. The sixth asset is located in Poole, which LGIM acquired in 2014 as a standalone investment.
Property consultancy, Gerald Eve, acting jointly with JLL, brokered the deal.
Richard Lines, partner at Gerald Eve, said: ‘Working alongside our operational real estate healthcare specialists, we are pleased to have advised LGIM on the disposal of these assets having played an instrumental part in their acquisition back in 2013/14. The portfolio provides long-dated inflation-linked income to one of the UK’s leading care home operators.’
James Waldock, director at JLL, said: ‘We expect to see continued demand from overseas capital in the UK Care Home market, attracted by the structural market dynamics of an ageing UK population and the increasing need for age-appropriate care accommodation.’
CBRE acted on behalf of PGIM Real Estate.
