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CareTrust agrees a 1.1 billion pound deal for 45 UK care homes

CareTrust agreed to acquire 45 UK care homes from LNT Care Developments for about 1.1 billion pounds. The purchase will proceed in stages: 24 recently built homes entered the first completed phase, while another 21 remain under development. Their later acquisition depends on completion and regulatory approvals. The agreement gives the company a route to a larger UK senior housing operating portfolio.

Economics & Markets··Morning
A contemporary UK care home with level access paths and a landscaped garden.

CareTrust secures 45 care homes through staged purchases

CareTrust REIT, a US real estate investment trust, agreed to acquire operational and developing UK care homes from LNT Care Developments. The agreement covers 45 new homes for approximately 1.1 billion pounds. LNT is a British care-home developer and operator.[1], [2]

The definitive agreement provides for purchases at different dates. CareTrust described it as a route to building a larger senior housing operating portfolio in the United Kingdom. The announced portfolio includes recently completed properties alongside homes that still need to finish construction.[1]

The first 24 homes were acquired for 576 million pounds

The initial acquisition was completed on 1 October and comprised 24 homes built within the past two years. Its price was approximately 576 million pounds, excluding transaction expenses. CareTrust financed the investment through proceeds from outstanding forward equity agreements and a draw on its revolving credit facility. The latter is a borrowing arrangement that allows funds to be drawn within an agreed limit.[1]

Another 21 homes await completion and approvals

The remaining 21 homes are under development, with an agreed acquisition amount of approximately 504 million pounds. CareTrust expects those purchases to proceed on a rolling basis next year as construction is completed and regulatory approvals are received. The timing of this part of the portfolio therefore follows each property’s completion and approval process.[1]

References

  1. News sourceS&P Capital IQCareTrust agrees £1.1 billion deal for 45 UK care homes↩1↩2↩3↩4
  2. News sourceThe CarerCareTrust agrees to acquire 45 UK care homes from LNT↩
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