AEW UK Long Lease REIT acquires Bristol care home for £6.7m
AEW UK Long Lease REIT has announced its acquisition of a Bristol care home for £6.7m.
The purchase of the 62-room, purpose-built care home, which is operated by Handsale Ltd, was funded through the extension of the company’s debt facility to £41m.
Alex Short, Director of AEW UK Investment Management LLP, and Portfolio Manager of the Company, said: “This acquisition is a great addition to our portfolio, with its accretive day one yield, long term income stream and attractive rental uplift profile. The property is located within an affluent outskirt of Bristol and has achieved strong occupancy levels over recent years.
“This debt facility extension and acquisition together both reflect our continued effort to improve dividend cover as well as boost the quality of the Company’s income stream through long leases and additional tenant diversification. The acquisition is reflective of the healthy pipeline of opportunity that we continue to see for this strategy and with a further asset also in exclusivity, we expect to make further acquisition announcements in the coming weeks.”
The home, which has been rated ‘good’ by the CQC and has a history of high occupancy and a predominance of private pay residents, has been acquired on a 30-year fully repairing and insurance lease with rental rises in line with the Retail Price Index of between 1% and 4%.