Apache Capital Partners announces that it has sold a prime freehold portfolio of three care homes in South East England locations to MedicX Healthfund II, a leading UK healthcare property investment fund managed by Octopus Healthcare, for £28 million. Apache Capital acquired the sites in the summer of 2013 and fully funded the development of three high-quality, purpose-built care homes. They comprise a total of 173 beds and have all been constructed, on time and on budget, in the past two years.
The properties are operated by the Maria Mallaband Care Group, a major care provider in UK, on separate leases with over 33 years unexpired and annual RPI-linked rent reviews. All the properties are located in affluent South East England locations, including Gerard’s Cross, Bisley and Canterbury, attracting self-funding residents. Strutt & Parker and Knight Frank advised Apache Capital Partners on the transaction, which represents a total investment of approximately £28 million. Octopus Healthcare has committed in excess of £370 million to elderly care homes and specialist healthcare premises since 2010.
Richard Jackson, Co-Founding Partner, Apache Capital Partners, said: "We successfully generated very attractive ungeared returns ahead of our geared forecast for our investors by developing, stabilising and selling the MMCG portfolio. This is in line with Apache Capital’s strategy of investing and developing early into alternative sectors to create institutional grade bespoke portfolios of scale, before exiting to institutional investors. Despite ongoing market uncertainties due to Brexit, this sale reinforces our investment focus on sectors whose performance and occupational demand fundamentals are in part underpinned by limited high quality supply and non-discretionary spend, enabling us to generate stable, superior, long term income. We continue to invest into other opportunities offering superior income and capital growth across the Private Rented Sector, student accommodation and healthcare sectors, including retirement villages."