Cushman & Wakefield has secured a pre-sale for £17.3m of an 80 bed care home on the site of the former maternity ward at Queen Mary’s Hospital, Sidcup.
The sale of the care home on a forward commitment basis to Ropemaker Properties, the property holding company of BP Pension Fund, which is expected to be completed in late 2018 has been pre-let to Care UK for a term of 30 years with annual rent reviews linked to RPI represents a market leading NIY for that covenant of 4.5%.
Simon Ringer, Partner and Head of Property Funds at Bridges Fund Management, said: "We began investing in care homes because we saw that there was a real under-supply of high-quality care accommodation for the elderly – and because we believed that once built, these sites would represent attractive long-term assets for institutional investors. The pre-sale of our site at Sidcup is another great example of that.”
James Hanson, Partner and Head of Healthcare Transactions, Cushman & Wakefield, said: “Upon completion the property will provide 80 much-needed registered care beds built to the highest standards, ensuring they match the requirements of the specialist operator and the elderly residents the homes will care for. We are delighted to have acted for Bridges in securing a marketing leading price, which demonstrates the very strong demand for well let long income healthcare real estate.”