- The 80-bed care home, which is under construction, has already been pre-let to Care UK
- The sale, to Ropemaker Properties, represents a net initial yield for Bridges of 4.5%
- Bridges first bought the site in 2015, investing from its third property fund
- It has been investing heavily in the care sector since 2010
Bridges Fund Management (“Bridges”), the specialist sustainable and impact investor, has agreed the pre-sale of an 80-bed care home in Sidcup, Kent, to Ropemaker Properties (“Ropemaker”).
Ropemaker, the property holding company of BP Pension Fund, has committed to acquire the site for £17.3m. For Bridges, this reflects a net initial yield of 4.5%. The sale is expected to complete in late 2018, once the construction phase is finished.
In 2015, Bridges bought a 3.1-acre site adjacent to St Mary’s Hospital in Sidcup, investing from Bridges Property Alternatives Fund III. Working in partnership with specialist developer Castleoak, it has since been granted planning consent for a scheme comprising 80 care beds. The home has already been pre-let to operator Care UK on a 30-year term.
Bridges has been actively investing in the healthcare sector – and care homes in particular – since 2010, in line with its strategy of focusing on investments that can make a positive societal impact alongside attractive commercial returns.
The ageing population and lack of public sector funding for the elderly, particularly those with specialist care needs, has created a shortfall in the supply of high-quality accommodation. At the same time, private-sector operators were seeking new, purpose-built facilities primarily for private-pay residents. Bridges and Castleoak have now collaborated on the development of 15 care homes across the South of England.
Cushman & Wakefield advised Bridges on the transaction, while AHBN LLP advised Ropemaker.
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, 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.”
