First Priory sale and leasebacks now complete

On behalf of The Priory Group, Vector completed the the first of several freehold sales in a programme of sale and leasebacks of new, purpose built nursing home facilities.

Cooper House in Bradford is a high quality nursing home completed in 2009 and comprising 80 beds over three storeys.

Priory has taken on a new 30 year lease at an agreed rent of subject to upward only annual rent reviews linked to RPI with a cap and collar range.

The freehold was acquired by a private investor and the price reflects a net yield of 6.75% after allowing for usual purchasers
costs of 5.75%

Vector are advising Priory on the sale of a further 6 homes throughout the UK following their expansion into the elderly care sector.

Richard Harris, Director of Vector PG said: “This transaction confirms that the sale and leaseback market is alive and well for high quality healthcare assets. Over recent months we have witnessed a significant increase in investor interest in the sector given the long term growth opportunity it presents,underpinned by the positive demographic fundamentals for the UK. We believe the healthcare sector is an exciting space for traditional property investors and is now recognized by IPD which adds to its appeal”.