On behalf of AXA Real Estate, Knight Frank specialist property team have acquired freehold interest of Manor Lodge care home, Chelmsford, from Aprirose REI for £17.6 mln (approx. €24 mln) at a yield of 4.75%.
The 112 room, 4,730 m² care home building is let to Care UK Community Partnerships Limited (guaranteed by Care UK Ltd) at £890,788 (approx. €1.2 mln) per annum on a term of 25 years.
Shaun Roy, head of specialist property team, Knight Frank, commented; “This is a significant care home investment transaction demonstrating increased institutional appetite for the sector and a further compressing of yields.”
Source: Knight Frank