Aedifica secures four UK care homes in £61m acquisition

The four care homes of this portfolio are located in prosperous residential areas in Sayers Common (Sussex), Broadstairs (Kent), Southampton (Hampshire) and Midsomer Norton (near Bath). The three trading properties have been recently completed in Q2 2024. The property in Midsomer Norton is currently still under construction and is expected to be completed in Q4 2024.

All care homes are identical in layout and specifications. Catering to the upper mid-market elderly care segment, they meet the highest standards of care and comfort. Each of the care homes accommodates up to 66 residents in spacious bedrooms with en-suite facilities that are specifically tailored to suit the needs of seniors requiring residential care. The buildings not only offer the highest standards in terms of care and comfort, but also in terms of sustainability, making this portfolio truly futureproof. All care homes are equipped with energy-efficient systems.

A ground source heat pump provides sustainable, all-electric heating, while expansive rooftop solar power systems supply the buildings with renewable energy. This is reflected in high performance ‘A’ EPC1 scores, contributing to the ongoing, continuing improvement of the sustainability of the Group’s real estate portfolio.

Stefaan Gielens, CEO of Aedifica, commented: “Aedifica continues to underpin the quality of its UK real estate portfolio by investing approx. £61.5 million in a portfolio of four futureproof care homes. Three of them are recent developments and are already trading, while the fourth care home will be completed soon. Each of these purpose-built care properties accommodates up to 66 residents and meets the highest standards of care and comfort.”

Bruce Walker, Country Manager of Aedifica UK, adding: “This portfolio stands out for its particular focus on sustainability. These futureproof care properties are all highly energy-efficient, which is reflected in excellent ‘A’ EPC scores. Moreover, this transaction deepens our successful relationship with LNT Group, a leading UK care home developer and operator with whom we have now worked on a total of thirteen projects.”

All care homes are operated by Oyster Care Homes, a provider of high-quality residential care services for the elderly focusing on resident well-being and quality of life. The operator is controlled by the LNT Group directors and Oyster Care Homes management. The LNT Group, with whom Aedifica has successfully partnered on several projects, has extensive experience in the UK healthcare sector. The care homes are let on the basis of new irrevocable 35-year triple net leases. The initial gross rental yield on purchase price amounts to approx. 6.5% and the acquisition will be immediately EPS accretive.

This transaction is partly financed by recycling capital generated by disposals under Aedifica’s strategic asset rotation programme, which targets €100 million of divestments in 2024. So far, twelve assets have been divested for a total amount of nearly €75 million.