The Board of Directors of Impact Healthcare REIT plc (ticker: IHR), the real estate investment trust which gives investors exposure to a diversified portfolio of UK healthcare real estate assets, in particular care homes, announces that the Group has completed the transfer of four homes located in Scotland to a new tenant, Fulcrum Care (“Fulcrum”), on long-term leases. These homes have been operated by Melrose Holdings Limited (“Melrose”) following their transfer from the Silverline Group (“Silverline”) as part of a recovery plan first announced by the Group in June 2023. Melrose is an affiliate of Minster Care Group.
Since acquiring Silverline’s tenant companies, Melrose has stabilised the operations of the homes. The Board has now concluded that it is in the best interests of all the Company’s stakeholders to facilitate the transfer of the four homes in Scotland to a long-term third-party operator, Fulcrum. With this transfer, all seven of the former Silverline homes have now been transitioned to long-term operators.
Fulcrum is experienced at managing complex care home turnaround strategies and brings a wealth of operational experience to these four homes. Fulcrum is committed to the long-term success of the homes with leases extending to 35 years and will recommence rent payments on 1 November 2024.
To help Fulcrum ensure the homes achieve their full potential, the Company has granted a lease incentive of £0.3m and a short-term working capital facility of £0.45m to fund any short term liquidity requirements. The working capital facility will attract a coupon of 10% per annum. The working capital facility is repayable and the lease incentive is expected to be fully recovered over the life of the leases. We anticipate investing a further £0.5m of capex across the four homes, which will be rentalised and accretive to shareholder value.
Andrew Cowley, Managing Partner of Impact Health Partners commented, “I am delighted that we have now secured new long-term tenants for all the ex-Silverline homes. We would like to thank Melrose for its interim management and turnaround of these homes. Our primary commitment has been achieved in ensuring continuity of care for the residents in these homes, while simultaneously securing long-term value for our shareholders.”
FOR FURTHER INFORMATION, PLEASE CONTACT:
Impact Health Partners LLP via Maitland/AMO
Andrew Cowley
David Yaldron
Jefferies International Limited
Tom Yeadon, tyeadon@jefferies.com
Ollie Nott, onott@jefferies.com
Tel: +4420 7029 8000
Winterflood Securities Limited
Neil Langford, neil.langford@winterflood.com
Joe Winkley, joe.winkley@winterflood.com
Tel: +4420 3100 0000
H/Advisors Maitland (Communications Adviser)
James Benjamin, impacthealth-maitland@maitland.co.uk
Rachel Cohen
Tel: +44 7747 113 930
The Company’s LEI is 213800AX3FHPMJL4IJ53.
Further information on Impact Healthcare REIT is available at www.impactreit.uk.