AEW UK Long Lease REIT Plc announce the acquisition of a long let Care Home in Nailsea, Bristol for £6.65 million reflecting a net initial yield of 5.8%, funded through the Company's debt facility. The asset comprises a 62-room, purpose built care home located in an affluent suburb approx. 8 miles south west of Bristol and is fully let to, and operated by, Handsale Ltd. an established national provider of elderly care services. A new 30 year fully repairing and insuring lease has been granted by AEWL from the date of the acquisition providing the Company with annual rental uplifts in line with the Retail Price Index, with a minimum uplift level of 1% and a cap of 4%. The facilities of the home and its care provision have been rated as being 'Good' by the Care Quality Commission and in addition, the home has a history of high occupancy rates combined with a high percentage of private pay residents in this area which is currently under supplied for elderly care residential accommodation.

This acquisition was funded through the extension of the Company's existing debt facility with Canada Life Investments by £11 million. In December 2018, the Group agreed an increase of £11 million to its loan facility with existing lender Canada Life, taking the total facility amount to £41 million. This amount is equal to 35% of the Company's gross assets which is in line with its target and is below its stated prospectus limit of 40%. The weighted average interest cost of the Group's £41 million facility is 3.19% and is repayable on the 20 October 2025.