Knight Frank advised AXA Real Estate on the acquisition of 112 bed regional care home (UK)

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