Investment sale of refurbished 235 bed NHS keyworker accommodation blocks located north of Cambridge.
Urban & Civic PLC
Disposal of residential keyworker scheme let to Royal Papworth Hospital NHS Foundation Trust providing an indexed linked income stream with c 23 years unexpired. The property is let on a 25-year lease from 9 July 2018 to the Royal Papworth Hospital NHS Foundation Trust (c.23 years remaining). The current rent is £723,351 reflecting an average rent per bed of £3,078 per annum or £59.19 per week.
The next rent review is due on 9 July 2020 when the rent is anticipated to rise to £745,052 per annum reflecting an average rate per bed of £3,170 per annum or £60.96 per week. The vendor will top up the rent from completion to this level until the rent review date.
The lease is drawn on FRI terms and is subject to a photographic schedule of condition. There are annual rent reviews on 9 July in line with the mean average ‘Band 5’ NHS annual salary subject to a minimum uplift of 1.25% and maximum of 3.00% per annum (whilst Royal Papworth Hospital are tenant). The new July 2020 rent is based off the 3.00% cap – the NHS Salary Band 5 is projected to rise by 4.271% in 2020/21.