MedicX Healthfund II, a leading UK healthcare property investment fund managed by Octopus Healthcare, is pleased to announce that it has acquired from Apache Capital Partners, the London and Gulf based private real estate investment management firm, a prime freehold portfolio of three care homes in South East England locations.
The properties are operated by the Maria Mallaband Care Group, a major care provider in the UK, on separate leases with over 33 years unexpired and annual RPI-linked rent reviews.
Strutt & Parker and Knight Frank advised Apache Capital Partners on the transaction, which represents a total investment of approximately £30 million.
The three high-quality, purpose-built care homes comprise 173 beds and have all been constructed in the past two years and fully financed by Apache Capital. All the properties are located in affluent South East England locations, attracting self-funding residents.
Octopus Healthcare has committed in excess of £370 million into premium elderly care homes and specialist healthcare premises since 2010.
Mike Adams, Chief Executive Officer, Octopus Healthcare, comments:
“The UK’s healthcare market continues to exhibit a structural undersupply of quality property, and also to attract increasing interest from investors seeking long term, sustainable income with fixed / index-linked rent increases. This acquisition reinforces our continued commitment to meet the growing healthcare needs of the elderly population by investing in premium, sustainable care home properties across the UK.”
Richard Jackson, Co-Founding Partner, Apache Capital Partners, comments:
“We successfully generated very attractive ungeared returns ahead of our geared forecast for our investors by developing, stabilising and selling the MMCG portfolio. This is in line with Apache Capital’s strategy of investing and developing early into alternative sectors to create institutional grade bespoke portfolios of scale, before exiting to institutional investors.
Despite ongoing market uncertainties due to Brexit, this sale reinforces our investment focus on sectors whose performance and occupational demand fundamentals are in part underpinned by limited high quality supply and non-discretionary spend, enabling us to generate stable, superior, long term income. We continue to invest into other opportunities offering superior income and capital growth across the Private Rented Sector, student accommodation and healthcare, including retirement villages.”
Phil Burgan, Chief Executive Officer, Maria Mallaband Care Group, comments:
“The Maria Mallaband Care Group and the team at Octopus Healthcare have been working in partnership since 2011 and I am delighted to see our relationship continue with this acquisition. Maria Mallaband prides itself on being one of the UK’s leading care home providers, offering luxurious, modern facilities and outstanding care. These three properties are exemplar care homes, delivered in conjunction with Apache Capital Partners.