Portfolio Overview

As at 30 June 2018, a portfolio of 177 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 £6.1 billion at 6 September 2018. Rental income at 30 June 2018 amounted to £48.2 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 19.4 years from 30 June 2018 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 £6.6 billion at 6 September 2018. Rental income at 30 June 2018 amounted to £2.0 million per annum and increases by 3.0% per annum throughout the lease term. The unexpired lease term is 26.1 years from 30 June 2018 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 30 June 2018 totalled £33.5 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 24.0 years from 30 June 2018 with no break options and the tenant has two rights to renew these leases for 35 years at the end of each term.
  • 131 Travelodge hotels located throughout England and Scotland operated by Travelodge Hotels Limited, the largest independent hotel brand in the UK. Rental income at 30 June 2018 totalled £28.9 million per annum, increasing by five yearly RPI upwards only rent reviews. The weighted average unexpired lease term is 23.9 years as at 30 June 20187 and there are no break options.
  • Manchester Arena, the UK’s largest indoor arena by capacity, including 160,000 sq ft of additional office and leisure space, together with a 1,000 space multi-storey car park. The Arena is let to SMG, the world’s largest venue management company, for 27.0 years as at 30 June 2018, while the offices and ancillary leisure space are let to tenants including Serco, Manchester City Council, Unison, JCDecaux and go-karting operator TeamSport. The leases on the Manchester site as a whole have an average term to expiry of 17.7 years and produce net passing rent of £5.9 million per annum as at 30 June 2018.
  • The Brewery at Chiswell Street, the largest catered event space in the City of London, let on a full repairing and insuring lease with a term to expiry of 13.0 years and passing rent of £3.4 million per annum as at 30 June 2018.
  • A portfolio of 18 high street pubs let on individual leases either to or guaranteed by Stonegate Pub Company Ltd, one of the UK’s largest privately managed pub companies. The portfolio produces passing rent of £2.0 million per annum as at 30 June 2018 and has an average unexpired lease term of 21.6 years.

For financial information on each tenant click here.

Portfolio Rent by Tenant Group

Tenant Rent Legend
Ramsay Health Care Limited £48.2m
Merlin Entertainments Plc £33.5m
Travelodge Hotels Limited £28.9m
SMG Europe Holdings Limited & SMG £3.8m
Orpea SA £2.0m
Others £8.1m
TOTAL £124.5m

The most recent independent portfolio valuation was at 30 June 2018 of £2.25 billion, reflecting a net initial yield of 5.2%.

 

1As at 30 June 2018 including £6.3 million of rent from German assets denominated in Euros and translated at €1:£0.8843.

Valuation graph

Tenant Value Legend
Hospitals £967.9m
Merlin UK assets £503.8m
Travelodge Hotels £482.1m
Other leisure assets £188.7m
Merlin German assets £110.0m
TOTAL £2,253.5m