AI Issue 5 2017

Acquisition International - May 2017 5 Impact Healthcare Reit Plc - Acquisition of Seed Portfolio The net initial yield on the Seed Portfolio is 7.6%. with rental income accruing from admission on 7 March 2017, supporting the company’s dividend policy. The company is targeting the payment of dividends for the first 12 months from admission which equate to a yield of 6%. per annum on the Issue Price, on an ungeared basis and payable in quarterly instalments. The Seed Portfolio comprises 56 residential care homes offering 2,479 beds which are leased to the Initial Tenants, in each case, for an initial term of 20 years with an option to extend for two further 10 year periods. The leases are subject to annual uplifts based on increases in the UK retail prices index (subject to a cap and floor). Further to the announcement on 2 March 2017 and following completion, applications have been made for the admission of 14,000,000 Ordinary Shares to trading on the Specialist Fund Segment of main market of the London Stock Exchange in connection with the Vendor Issue. Admission is expected to occur at 8.00 a.m. on 5 May 2017. Pursuant to the Vendor Issue, Mahesh Patel has subscribed for 10,000,000 Ordinary Shares through a wholly-owned SPV, Maal Limited. Maal Limited has entered into a lock-in deed dated 3 May 2017 on equivalent terms to the lock-in deed granted by Mr. Patel on the company’s IPO. The total number of Ordinary Shares in issue immediately following Admission will be 160,172,360, each with equal voting rights. This total voting rights figure can be used by shareholders as the denominator for the calculations by which they will determine whether they are required to notify their interest in the company under the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority. Rupert Barclay, non-executive Chairman of Impact Healthcare REIT plc, commented: “We are pleased to have completed the acquisition of the Seed Portfolio following the IPO in March 2017. This diversified operating portfolio of residential care homes is let to experienced operators for an initial term of 20 years, providing the company with stable, secure cash flows from admission. This enables the company to provide shareholders with regular, attractive, inflation-protected income with the potential for dividend and capital growth through active asset management as well as potential acquisitions. Impact Healthcare is a well-resourced and extensively networked care home investor well placed to capitalise on the highly-fragmented market with a supply/demand imbalance that is continuing to grow.” Impact Healthcare REIT plc is pleased to announce that the company has completed the acquisition of the Core Seed Portfolio and the Mulberry Portfolio for a total consideration of £148,754,000. All outstanding lending facilities have been repaid in full and the Seed Portfolio has been acquired debt-free by the company. The terms of the acquisition are in accordance with the prospectus published by the company on 24 January 2017 (the “Prospectus”). It’s often been said that honesty is the best policy, and in the case of the mergers and acquisitions market, this has never been truer. According to business valuation expert, Company Valuation Services, business owners considering a sale should keep things concise and simple to stand the biggest chance of success in 2017. This year is predicted to be strong for mergers and acquisitions, meaning that there are exciting times ahead for those who are interested in selling. But business owners should prepare themselves thoroughly to ensure that they are putting their best foot forward. To help those who are hoping to finalise a deal in 2017, CVS has collated their expertise into a comprehensive guide to help business owners put positive practices into action. Read the guide in its entirety at: https://www. company-valuation-services.co.uk/increase- business-value-12-months/. Gary Edwards, Marketing Manager at CVS believes a successful sale is all down to clear communication, transparency and preparation: “2017 is predicted to have exciting things in store for the mergers and acquisitions market, but that doesn’t mean that business owners should leave everything to chance. The key to a successful sale is preparation, honesty, and a solid idea of how much your business is worth. “January saw a high volume of deals being finalised, and it would be fantastic to see this continue into the rest of the year. Preparing for every eventuality and working with experts if needs be can help ensure that your deal becomes part of the success statistics.” If you would like more information, please contact Jakiya Rahman on 01204 977001 or jakiya@ bringdigital.co.uk . The Vital Ingredients Needed for a Successful Business Sale NEWS / From Around The World