2nd Mar 2016 11:04
LONDON (Alliance News) - Specialist Investment Properties PLC on Wednesday said it has made its first property acquisitions since completing its capital raising and and change of name in February.
The company, which raised GBP2.0 million, said that its Secta Properties Ltd subsidiary has completed the acquisition and leaseback of two existing children's homes in Heywood and Bury, Greater Manchester.
"Both homes are leased to Meadows Care Ltd, a well-established children's home care operator, with over 10 years' experience, on a 25-year inflation linked FRI lease," the company said.
The two properties cost GBP507,000, with Specialist Investment Properties funding GBP188,000 and the remainder coming from funds drawn under a framework facility agreement.
The properties were purchased from Jonathan Rigg and Niel Shelmerdine, principals of Meadows Care Ltd.
In addition, the Secta subsidiary is in talks to acquire two more residential properties in Birmingham to be leased to Meadows Care.
According to Specialist Investment Properties, this would enable Meadows Care to fulfil part of its contract with Birmingham City Council to provide children's accommodation.
The company is also in discussions with developers, property owners and care operators in relation to further acquisition opportunities, both in the children's homes sector and supported living sector.
"The initial average gross rental yield from the most advanced acquisition opportunities currently identified and in discussion is expected to exceed 8.0% per annum," Specialist Investment Properties said.
Specialist Investment Properties was previously known as Hotel Corp PLC.
Shares in Specialist Investment Properties were down 0.7% at 19.12 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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