Impact Healthcare REIT has acquired the 62-bed St Peters House care home in Bury St Edmunds in Suffolk for £7.4m.
The real estate investment trust has appointed one of its existing tenants, Welford Healthcare, to provide care at St Peters (pictured).
The initial rent of the care home, rated Outstanding by the Care Quality Commission will be £555,000, reflecting a yield of 7.5 per cent.
The terms of the new repairing and insuring lease with Welford for the home are the same as Impact's standard lease terms, with a fixed term of 25 years and annual upward-only rent reviews linked to RPI.
Welford, which is now operating six homes for Impact with a total of 305 beds, has meanwhile committed to a minimum annual expenditure on the maintenance of the home.
In a related development, Impact has completed a £47.5m sale and leaseback deal for nine Holmes Care Portfolio properties in Scotland.
Impact’s acquisition of the homes was subject to the required regulatory approvals from the Care Inspectorate in Scotland, which have now been received.
