Service: Agency, Asset Valuation & Advisory | Sector: Healthcare
The Challenge
Gerald Eve introduced the opportunity and advised Blackrock on the acquisition of The Montefiore Hospital in Hove. The property extends to c76,500 sq ft and was comprehensively refurbished as a state of the art independent acute surgical hospital which opened in 2012 with 3 main operating theatres, 20 inpatient bedrooms and ancillary facilities. The hospital is let to Spire Healthcare Limited with 22 years unexpired at the date of the transaction with a passing rent of c £1,900,000 pa.
The Solution
Gerald Eve provided comprehensive pre-purchase due diligence, valuation and investment advice. Our advice included an analysis of asset quality; an assessment of supply, demand and competition; a review of the lease terms; due diligence on the tenant’s covenant strength and market positioning; and estimates of trading potential and value.
The Result
With the support of our advice, Blackrock purchased the hospital in an off-market acquisition for c. £39m in March 2019, reflecting a net initial yield of c. 4.6%.
