London Stock Exchange welcomes Impact Healthcare REIT plc
Impact Healthcare REIT plc today opened the markets of the London Stock Exchange to mark the occasion of its Initial Public Offering and the admission of its ordinary shares to the Main Market on 7 March 2017.
The Company raised £160m from a mix of institutional and private wealth investors and intends to use the net proceeds of the issue to acquire a seed portfolio of up to 58 residential care homes offering 2,558 beds and lease the homes to the initial tenants, in each case for an initial term of 20 years with an option to extend for two further 10 year periods. The leases are subject to annual uplifts based on increases in the UK retail prices index (subject to a cap and floor). The Company also has identified a number of attractive pipeline opportunities.
The Company is targeting the payment of dividends for the first 12 months from Admission which equate to a yield of 6 per cent per annum on the issue price, on an ungeared basis and payable in quarterly instalments. The Company is also seeking to grow the dividend over time.
The Company has appointed Impact Health Partners LLP as its investment adviser to provide advice in respect of the Portfolio. The principals of the investment adviser have significant expertise in the healthcare real estate industry including founding and growing a number of healthcare groups.
Winterflood Investment Trusts acted as sole bookrunner and financial adviser.
Commenting on the result of the IPO, Rupert Barclay, non-executive Chairman of Impact Healthcare REIT plc, said:
"We are delighted by the strong response from such a broad range of high quality investors to our initial public offering. The proceeds will be invested in an existing diversified operating portfolio of residential care homes let to experienced operators for an initial term of 20 years. This provides the Company with cash flows from Admission and an excellent platform which will provide our new shareholders with attractive inflation-protected dividends as well as the potential for capital growth by delivering on the opportunities that exist both in the portfolio as well as in the wider market."
Mahesh Patel of the Company's Investment Adviser, Impact Health Partners LLP, commented:
"The UK's growing and ageing population along with the recognition for the need to reduce pressure on the NHS by moving people out of high-cost, acute-care beds provides an attractive market backdrop. The highly-fragmented nature of the care home market creates multiple opportunities and the Company is well placed to capitalise on our position as a well-resourced care home investor. We welcome our new shareholders and look forward to working with them and delivering on our investment strategy."