- Care Reit
- 25 September 2024 11:05:38
Source: Sharecast
The London-listed real estate investment trust said the move was part of a broader recovery plan initiated in June last year, following the acquisition of the homes from Silverline Group and their subsequent management by Melrose Holdings, an affiliate of Minster Care Group.
Melrose had stabilised the operations of the homes since their acquisition.
However, Impact’s board said it had determined that transferring the properties to a long-term operator like Fulcrum was in the best interest of stakeholders.
The transfer completed the transition of all seven former Silverline homes to permanent operators.
Fulcrum Care, known for its expertise in managing complex care home turnarounds, would take on long-term leases of up to 35 years for the properties.
Rent payments were scheduled to restart on 1 November.
To support the transition, Impact Healthcare said it had provided a lease incentive of £0.3m and a short-term working capital facility of £0.45m.
The facility, carrying a 10% annual coupon, was intended to cover immediate liquidity needs, and would be repayable.
Additionally, Impact Healthcare said it planned to invest a further £0.5m in capital spend across the four homes.
The investment would be rentalised, contributing to shareholder value.
Impact said the lease incentive was expected to be fully recovered over the duration of the leases, aligning with the company's strategy of long-term value creation.
“I am delighted that we have now secured new long-term tenants for all the ex-Silverline homes,” said Andrew Cowley, managing partner at Impact Health Partners.
“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.”
At 1044 BST, shares in Impact Healthcare REIT were flat at 90.8p.
Reporting by Josh White for Sharecast.com.