Ascot: AEW UK buys care home

AEW UK, the international investment management firm, has bought Larkland House, a care home near Ascot, for £6.66 million. The home will be linked to its recently-launched Real Return Fund, a new strategy which seeks to align the real benefits of property with the liabilities of pension funds.

AEW anticipates a net initial yield of 6.14%, and the investment value is significantly underpinned by the vacant-possession value of the property.

The property, which covers an area of 0.88 acres and provides 32,252 sq ft over basement, ground, first and second floors, has 55 en-suite bedrooms and is let to Care UK Community Partnerships for 19 years. 

Ian Mason, portfolio manager of AEW UK Real Return Fund, said: “This latest acquisition demonstrates our continued confidence in the investment market following the EU referendum. So far we have a created a well-diversified portfolio of 28 properties.”

Mason continued: “We aim to deliver better risk-adjusted, liability-focused returns with inflation-linked cashflow and income growth central to the strategy. The fund is challenging the way investors can think about property as a real asset and match for liabilities.”

Charlie Fletcher, partner at Knight Frank Specialist Property, added: “The ability to draw on our specialist healthcare expertise meant we were able to look beyond the great location and long income stream to the underlying trading potential of the asset and long-term income security”.

The Vendor was advised by CBRE. AEW UK was advised by Knight Frank.

The AEW UK Real Return Fund is an FCA-regulated, open-ended, core-style PAIF with a total real-return target of 4% per annum net of fees and expenses. 

Credit: CoStar