Specialist Investment Properties agrees to buy Merseyside complex

Specialist Investment Properties announced a new acquisition on Friday - its seventh since implementing its new investment policy in early 2016.

The AIM-traded firm’s wholly-owned subsidiary SIPP Holdings has entered into a share purchase agreement to acquire a special purpose vehicle, HB Villages St Helens Limited, which will own four supported living bungalows in St Helens, Merseyside.

“Construction of the properties is due to take approximately ten months and completion of the acquisition will not take place until construction has been fully completed,” SIPP’s board said in a statement.

“SIPP Holdings will not be involved in the construction process or be obliged to provide any funding in conjunction with it.

“The required planning consents for the properties have been obtained,” it added.

An agreement has been entered into to lease the Properties to Inclusion Housing Community Interest Company on a 35-year inflation linked, full repair and insuring lease.

The first year's rent under the terms of the lease is approximately £47,000 per annum.

“Inclusion Housing is an established housing association and will be responsible for placing adults with physical and mental disabilities into the properties, care services will be provided by Lifeways Finance Limited,” the board explained.

The consideration for the acquisition will be £0.72m, with SIPP funding £0.22m and the balance coming from funds drawn under the company's loan facility agreement with Heritage Square Limited.