Portfolio Overview

As at 31 December 2020, a portfolio of 161 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:

  • 11 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 £8.1 billion at 9 March 2021. Rental income at 31 December 2020 amounted to £34.4 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 16.3 years from 31 December 2020 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 £5.7 billion at 9 March 2021. Rental income at 31 December 2020 amounted to £2.2 million per annum and increases by 3.0% per annum throughout the lease term. The unexpired lease term is 23.6 years from 31 December 2020 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 Limited, the world’s second largest visitor attraction business after Disney. Rental income at 31 December 2020 totalled £35.6 million per annum1, increasing annually each June in line with RPI (except Heide Park, Germany which increases by 3.34% per annum each July). The weighted average unexpired lease term is 21.5 years from 31 December 2020 with no break options and the tenant has two rights to renew these leases for 35 years at the end of each term.
  • 123 Travelodge hotels located throughout England, Wales and Scotland operated by Travelodge Hotels Limited, the largest independent hotel brand in the UK. Contracted rental income at 31 December 2020 totalled £29.2 million per annum, increasing by five yearly RPI upwards only rent reviews. The weighted average unexpired lease term is 21.4 years as at 31 December 2020 and there are no break options. As a consequence of a CVA agreed in June 2020, £14.5 million of rent has been foregone for 2020, and £8.9 million has been foregone for 2021, after which rents are due to return to the levels originally contracted for the period from 1 January 2022.
  • 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 and SMG Europe Holdings Limited, both wholly-owned subsidiaries of ASM Global, the world’s largest venue management company, for 24.5 years as at 31 December 2020, while the offices and ancillary leisure space are let to tenants including Serco, Citipark, Unison, JCDecaux and go-karting operator TeamSport. The leases on the Manchester site as a whole have an average term to expiry of 17.1 years and produce net passing rent of £5.7 million per annum as at 30 June 2020.
  • 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 35.5 years and passing rent of £3.4 million per annum as at 31 December 2020.
  • 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 contracted rent of £2.2 million per annum as at 31 December 2020 and has an average unexpired lease term of 24.5 years.

For financial information on each tenant click here.

Portfolio Rent (before rent concessions) by Tenant Group

Tenant Rent Legend
Merlin Entertainments Limited £35.6m
Ramsay Health Care Limited £34.4m
Travelodge Hotels Limited £29.2m
SMG Europe Holdings Limited & SMG £4.0m
The Brewery on Chiswell Street Limited £3.4m
Orpea SA £2.2m
Stonegate Pub Company Limited £2.2m
Others £2.3m
TOTAL £113.3m

The most recent independent portfolio valuation was at 31 December 2020 of £1.95 billion, reflecting a topped up net initial yield of 5.4%.

1As at 31 December 2020 including £7.1 million of rent from German assets denominated in Euros and translated at €1:£0.90.

Valuation graph

Tenant Value Legend
Hospitals £769.1m
Merlin UK assets £500.9m
Travelodge Hotels £384.8m
Other leisure assets £176.8m
Merlin German assets £115.3m
TOTAL £1,946.9m