Following a pre-let to Care UK, Savills, on behalf of AK Property Investment Ltd, has agreed the off market sale of a new purpose built 59-bed care home, Sherwood Grange, in Kingston Vale, London to LaSalle Investment Management.

The developers of the 0.55 acres (0.22 hectare) site, secured planning permission and the support of the local residents association, who welcomed the idea of a care home to the area. Care UK has agreed to a new 25-year lease upon completion.

Shaun Reed, National Director at LaSalle, comments: “There is a strong need for care homes in London and good quality, future-proofed assets constructed well above minimum standards are in high demand. As with build to rent or student housing, care homes let to leading operators offer our clients attractive long term, index-linked returns.”

Colin Rees Smith, director of healthcare at Savills, says: “At a time when there is some adverse publicity in the sector, this deal reflects the strong appetite to invest in the healthcare market. This was a complicated site to develop, given its size and former petrol station use and we are very pleased to have sold the completed investment to LaSalle having secured the pre-let to Care UK and to coincide with the site’s practical completion in mid April.” 

LaSalle Investment Management was advised by Gerald Eve LLP.