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Foxbridge House DW

TIAA Henderson Real Estate makes debut care home acquisition

TIAA Henderson Real Estate (TH Real Estate) has acquired a portfolio of care homes for £48.9m.

The portfolio, acquired from a private company, comprises Caridean House in Edinburgh, Foxbridge House in Orpington, Kent, and Bowes House in Hailsham, East Sussex.

Each property was purpose-built in 2013, and benefits from unexpired lease terms of 30 years to Care UK, one of the UK’s top five care home operators. In total, the properties provide 264 single en-suite bedrooms. The assets have high occupancy rates, testament to their strong locations, supported by affluent and ageing local demographics.

Knight Frank acted for the seller. Lambert Smith Hampton and CBRE acted on behalf of TH Real Estate. 

Alice Breheny, Global Co-Head of Research at TH Real Estate said: "As a house, we are increasingly focused on monitoring trends influenced by long-term demographic changes. Ageing demographics is a key example of this. The care home industry is needs-driven. In the UK, there is an undersupply of good care home stocks with a significant latent demand that is set to grow in the coming years.

"The specification and design of the most modern purpose-built assets has created a new generation of care home that is future-proofed. The assets acquired have recently been constructed and are best-in-class, which means they won’t suffer from obscelesence, an historical issue for real estate investors across this sector."

Marcus Langlands Pearse, TH Real Estate added: "The acquisition fits within the Fund’s strategy of acquiring assets in the alternative sector that provide long-term inflation-proofed income streams, strong covenants, attractive total returns and further portfolio diversification."

Julian Evans, Head of Healthcare, Knight Frank, commented: "The Care UK brand and covenant strength attracted significant competitive tension from both domestic and overseas investors. Healthcare fixed-income is now firmly considered to be a core asset class."

Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority.TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services

The value of Investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and Investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice.

*All figures as at 30 September 2014.

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