Impact Healthcare REIT, a real estate investment trust comprising UK healthcare real estate assets with a focus on care homes, has sold five of its non-core care homes for £8.8 million.

It sold three care homes in East Yorkshire for a total £4.3 million: Ashgrove Care Home, a 56-bed care home in Cleethorpes, Emmanuel House, a 44-bed care home in Hessle, and Hamshaw Court, a 45-bed care home in Hull. The purchaser is a local owner and operator of care homes, and the transaction is subject to re-registration of the care home operations from the current tenant, Minster Care Management, to the purchaser which requires Care Quality Commission approval. Completion is expected during the third quarter of the year.

Two homes were also sold in Clwyd for a total £4.5 million: Eryl Fryn Care Home, a 30-bed care home in Llandudno, and Stansty House Care Home, a 73-bed care home in Wrexham. They were sold to an affiliate of Minster.

Impact acquired the five homes as part of its IPO seed portfolio in May 2017. The company stated that the homes have either had a history of relative underperformance, have low EPC scores, or are smaller than the ideal size for a care home (the average size of homes in the Impact portfolio is 56 beds).

Following the sales, Impact will own 135 properties.

Impact added that it has achieved an unlevered internal rate of return on these homes from purchase to sale of 6.6% per annum. Once completed, these transactions will also reduce the group’s exposure to its largest tenant.