AEW buys pair of care homes for £11.5m

London-based AEW UK Real Return Fund has purchased care homes in Accrington and Skelmersdale for a total investment of £11.5m.

Leicester-based Prime Life acquired Springhill Care Group and immediately sold the freehold of its two properties to AEW. 

Springhill Care Centre in Accrington is registered for 116 residents, with a price per bed of £74,388. The fund expects to see a net investment yield of 6.8 per cent.

Birch Green Care Home in Skelmersdale comprises a purpose built nursing and residential home. It is registered for 74 clients, has a price per bed of £33,784 and the fund projects a net investment yield of 6.7 per cent.

Ian Mason, portfolio manager at AEW UK Real Return Fund, said: "The care home sector is driven by strong social and demographic needs and the UK is set for huge growth in its elderly population over the next few decades.

"As a result, it has strong market fundamentals and should remain resilient to any Brexit risks/uncertainties and AEW has taken the strategic decision to increase the fund’s weighting in this sector.

Prime Life are well regarded by operators and investors in areas of complex care needs and specialities.

"We are therefore delighted to have these two properties with Prime Life as tenants, a top provider of higher acuity and nursing care, with a strong balance sheet. They are well regarded by operators and investors in areas of complex care needs and specialities."