Oakland Care Home, Kenyon Lane, Moston, Manchester, M40

Overview

A freehold block of 24 self-contained apartments, 45 bedrooms in total, in North Manchester. Formerly operated as a care home and since converted. A full-repairing-and-insuring (FRI) lease has been provided to us in agreed form at £650,000 per annum net on a social-housing basis; the executed counterparts, the term and the lessee covenant are to be confirmed in due diligence. Under FRI terms the tenant is responsible for repairs, insurance and voids, so day-to-day management sits with the tenant rather than the landlord.

Investment highlights

• Freehold block of 24 self-contained apartments, 45 bedrooms
• FRI lease in agreed form on a social-housing / supported-living basis
• £650,000 p.a. net rent under the agreed lease, approximately 10.32%
• Tenant covers repairs, insurance and voids
• Long lease term with repairs, insurance and voids on the tenant
• North Manchester regeneration area

Location & demand

Moston sits in the M40 postcode area of North Manchester, between Rochdale Road and Oldham Road. Newton Heath & Moston Metrolink stop is nearby on the Rochdale line, and the district sits within Manchester’s northern regeneration area, where sustained public and private investment is lifting demand for housing across every tenure.

North Manchester’s need for self-contained supported accommodation is strong and structural. Registered providers and supported-living operators compete for blocks of self-contained units close to transport and services, and 24 apartments totalling 45 bedrooms under a single freehold is a rare lot in this market. The FRI lease on a social-housing basis puts repairs, insurance and voids with the tenant, so the £650,000 a year arrives without day-to-day management.

The numbers

Asking price	£6,300,000
Rent under the agreed lease	£650,000 per annum net
Net yield	Approximately 10.32%
Tenure	Freehold
Units	24 self-contained apartments, 45 bedrooms
Lease	FRI in agreed form, social-housing / supported-living basis. Executed counterparts and term to be confirmed