Portfolio Overview

As at 31 December 2016, a portfolio of 81 well established, key operating real estate assets, assets that comprise an important part of each tenant group’s business and financial performance.

The Portfolio includes:

  • 19 private hospitals located throughout England guaranteed by Ramsay Health Care Limited, the listed Australian private healthcare group, an ASX100 constituent and one of the top five private healthcare providers in the world with a market capitalisation of £8.5 billion at 8 March 2017. Rental income at 31 December 2016 amounted to £45.6 million per annum, increasing by a minimum of 2.75% per annum each May throughout the lease term. The unexpired lease term of each hospital is 20.4 years and there are no break options.

  • Central London’s only psychiatric hospital let to Florence Nightingale Hospitals Limited and guaranteed by Orpea SA, the French parent company of a group operating retirement homes, outpatient and rehabilitation clinics and psychiatric care with a market capitalisation of £4.3 billion at 8 March 2017. Rental income at 31 December amounted to £1.9 million per annum and increases by 3.0% per annum each May throughout the lease term. The unexpired lease term is 27.6 years and there are no break options.

  • Four well known visitor attractions including Alton Towers and Thorpe Park, two of the top theme parks in the UK, together with two hotels, let to principal operating subsidiaries of and guaranteed by Merlin Entertainments Plc, the world’s second largest visitor attraction business after Disney. Rental income at 31 December 2016 totalled £31.4 million per annum1, increasing annually each June in line with RPI (except Heide Park, Germany increases by 3.34% per annum each July). The weighted average unexpired lease term is 25.5 years with no break options and the tenant has two rights to renew these leases for 35 years at the end of each term.

  • 55 Travelodge hotels located throughout England and Scotland operated by Travelodge Hotels Limited, the largest independent hotel brand in the UK. Rental income at 31 December 2016 totalled £13.7 million per annum, increasing by five yearly RPI upwards only rent reviews. The weighted average unexpired lease term is 26.3 years and there are no break options.

For financial information on each tenant click here.

Portfolio Rent by Tenant Group

TenantRentLegend
Ramsay Health Care Limited£45.6m
Merlin Entertainments Plc£31.4m
Travelodge Hotel Limited£13.7m
Orpea SA£1.9m
TOTAL£92.6m

The most recent independent portfolio valuation was the valuation of the leisure and healthcare portfolios at 31 December 2016 of £1.64 billion, reflecting a net initial yield of 5.3%. The portfolio value is attributable to Ramsay Hospitals at 52%, 28% to Merlin UK assets, 6% to Merlin German assets, 12% to Travelodge Hotels and 2% to the London psychiatric hospital.

1As at 31 December 2016 including £5.9 million of rent from German assets denominated in Euros and translated at €1:£0.8583.

Valuation graph

TenantValueLegend
Merlin UK assets£454.2m
Merlin German assets£96.5m
Ramsay Hospitals£850.5m
Orpea: London Psychiatric Hospital£42.4m
Travelodge Hotels£198.1m
TOTAL£1,641.7m