05 April 2016, London: LaSalle Investment Management (“LaSalle”), the global real estate investment manager, has acquired the freehold of Horfield Lodge Nursing Home in Bristol from Aprirose, the real estate investment company, for £15.3 million, representing a net initial yield of 4.5 per cent.
Horfield Lodge is a purpose built property that provides 75 bedrooms over four floors for residential, dementia and nursing care. The accommodation is split between 53 ensuite cluster rooms with access to a communal dining and living room, and 22 care suites that offer a double bedroom with bathroom, living room and kitchenette.
It is let to Methodist Homes, a charity that has delivered high quality care to the elderly for over 70 years, with 30 years left unexpired on the lease. Horfield Lodge is in high demand with 95 per cent occupancy on average and a strong waiting list.
Overlooking Horfield Common, the property is well-located in a residential neighbourhood within 3.5 miles of Bristol city centre.
Stuart Richmond-Watson, Fund Manager, LaSalle Investment Management, said: “Horfield Lodge is long let to a reputable charity with a strong covenant and provides attractive index-linked returns. High quality, modern care homes close to major conurbations offer strong investment fundamentals as the demand for rooms is unlikely to wane due to the UK’s ageing populating. It is part of a wider strategy to target alternative assets across Europe that are underpinned by favourable demographic, technology or urbanisation trends.”
Gary Jones, Chief Operating Officer, Aprirose, said: “We are nimble investors and we are frequently looking for the best investment and exit opportunities. Bristol is a currently a very exciting market to be operating in, and we have exited on this asset in line with our business plan at the time of purchase. We will continue to look for the best investment opportunities for our clients in Bristol and in other regional markets.”