PGIM Real Estate has bought six care homes from Legal & General Investment Management in a deal worth £70.2m.
The portfolio of purpose-built care homes, which consists of 430 single ensuite bedrooms, is operated by Care UK.
Five of the care homes are in East Anglia, with 41 per cent of the beds subject to a block contract agreement with Suffolk County Council.
LGIM forward funded the five East Anglia 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 They were developed in conjunction with Suffolk County Council to replace the area’s outdated homes and provide essential continuity of care for the region.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 care home is in Poole, Dorset, which LGIM acquired in 2014 as a standalone investment.
The six care homes are let to Care UK with a weighted average unexpired lease term of 23 years.
The leases are subject to annual RPI-linked rent reviews, subject to a collar and cap of zero to five per cent per annum.
Gerald Eve and JLL advised Legal & General Investment Management on the disposal while CBRE acted for PGIM Real Estate.
