Press Release – 90 North concludes profitable sale of £50.55 Million Care Home Portfolio in UK, Midlands

90 North, acting as Property & Investment Advisor, has advised on the sale of a UK based residential care portfolio originally acquired in November 2013 by way of a sale & lease back from operator Prime Life Limited (“Prime Life”).

An established care operator, Prime Life is a family-owned business, with over 30 years’ experience operating over 1,800 beds across 60 homes in the UK. The properties provide specialist facilities and services for elderly care, high dependency dementia and for younger residents with learning disabilities, mental illnesses and physical disabilities.

The portfolio comprises 12 properties leased to Prime Life on institutional leases with an unexpired term of 31 years (expiring November 2048, without break clauses) and subject to annual upward-only reviews index-linked to the Retail Prices Index.

The sale was structured in two parts:

• A part property sale to AEW UK Real Return Fund and AEW Long Lease REIT plc for £22M (completed 30/10/17); and
• The sale of the issued share capital of the Prop. Co. to LXi REIT for £28.5M for the  balance of the portfolio (completed 03/11/17).

Edward Gibbon, Senior Asset Manager of 90 North who advised on the sale commented:

“The sale of these assets has capitalised on a point in the investment cycle when demand for long let income to strong performing tenants is high. We are delighted that the investment has exceeded expectations, generating a net IRR of approximately 13.5% and total return on equity of approximately 55% over the four year hold period”.

Nick Judd, Founder and Head of investment at 90 North, commented:

“The sale of this portfolio concludes our fourth profitable exit in 2017. Previously this year, we have exited warehouse properties in the UK, Norway and Germany. To date, we have advised on the sale of approx. £176M producing a weighted average net IRR of approximately 13.5% including quarterly income distributions over the respective hold periods. Combined with acquisitions in the UK, US and Europe, 90 North has had a very busy year with further acquisitions and exits in progress”

90 North acted in partnership with Kuwait based Dimah Capital who acted as Strategic Advisers to the Seller. Gerald Eve acted as sell-side advisor and TLT Solicitors acted as legal advisors to the Seller.