90 North Real Estate Partners has completed the GBP40m acquisition of ten care homes as a sale and leaseback with Prime Life Limited, a Midlands care home operator, on behalf of a Middle East client.
Benefiting from 35 year leases with annual inflation increases to the rent, the 510 registered beds provide nursing care for elderly people and adults, typically with acute mental health problems or learning disabilities.
Structured to be Shari’ah compliant, 90 North is currently in due diligence on more assets in the same sector, responding to considerable investor demand from the Middle East and South East Asia.
Philip Churchill, founder partner of 90 North, says: “We are delighted to have worked with Prime Life on our first UK care home transaction. Whilst the sector has strong fundamentals with an ageing population and increasing demand for such care homes, it was the quality of the operator which gave us the confidence to proceed.”
James Caan, chairman of 90 North, says: “This further demonstrates 90 North’s breadth of real estate knowledge, with this transaction contributing to 90 North’s quadrupling of assets under management since this time last year. We look forward to closing more Shari’ah compliant transactions in this sector during 2014.”
Deloitte Real Estate represented 90 North. Knight Frank represented Prime Life.