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REIT Sells Nursing Homes for $200M

LONDON-REIT Asset Management has sold its nursing-home portfolio to private Middle Eastern investors. The fund manager wants to use the proceeds to expand in Germany and India.

By Anita Howarth | Updated on September 13, 2005

LONDON-REIT Asset Management has exited the nursing-home sector after selling a euro 157-million ($193-million) portfolio. The REIT has sold 27 properties let to Ashbourne Homes for euro 157 million ($193 million) reflecting a 6.5% yield. The properties have been sold to private Middle Eastern investors and the leases have a further 13 years to run. They are subject to two more minimum fixed increases, in 2008 and 2013.

The trust bought the 29-strong Ashbourne portfolio in 1998 in a euro 97-million ($120-million) sale-leaseback. REIT manager Kevin McGrath said at the time that the deal was part of a strategy to build a euro 296-million ($364-million) low-risk portfolio in anticipation of a downturn in the property market.

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