Cushman & Wakefield has advised on the sale and leaseback of an 80-bed luxury care home for the Affordable Housing and Healthcare Group (AHH) to Target Healthcare REIT, for an undisclosed sum.
Opened in 2017, Fairmile Grange in Christchurch, Dorset is located in an area with supportive demographics for a care home and yet has a shortage of good quality competing stock. The home is located next to Christchurch Community Hospital, a GP surgery, Macmillan Specialist Palliative Care Unit and a pharmacy.
Under the terms of the new deal, the property has been leased on a 30-year term to a subsidiary of Encore Care Homes, which has operated the site since opening, with annual rent reviews linked to RPI. While Encore Care Homes operate several homes in south west and south east England, they will be a new tenant for Target Healthcare REIT.
The new owners, Target Healthcare REIT, is a specialist healthcare Real Estate Investment Trust who invests in modern, purpose-built homes that provide the best environments for residents and their care providers in areas that can support them at a sustainable rent.
Mike Adams, Co-Chief Executive, Affordable Housing and Healthcare Group, said: “The sale of Fairmile Grange takes us a step closer to achieving our mission to provide viable solutions to the UK’s healthcare and housing crises, in partnership with NHS trusts and local authorities. The property forms part of a wider initiative to create vibrant, affordable communities centred around health and wellbeing for older people and key workers right across the borough – so the location within Christchurch Hospital’s grounds provides a perfect location.”
James Hanson, Head of Healthcare Transactions, Cushman & Wakefield, said: “Fairmile Grange not only provides 80 much-needed registered care beds, but also beds that have been built to the exceptionally high standards that you would expect from this specialist operator. We are delighted to have acted for AHH in securing a market leading price, which demonstrates the very strong demand for well-let and sustainable long income healthcare real estate.”
The UK Cushman & Wakefield Healthcare Team is part of the Global Cushman & Wakefield Healthcare Division. The team has extensive experience in all market segments covering the Elderly Care, Retirement Living, Medical and Educational segments working with a wide range of domestic and international clients including operators, investors and developers.