LONDON - Alpha Real Trust Limited has expanded its portfolio by acquiring five crematoria in England for a sum of £34.2 million, with a conditional agreement in place for a sixth. The assets were purchased from subsidiaries of Dignity Group Holdings Limited, a prominent UK funeral services provider. Dignity will continue to manage the crematoria under 40-year leases that include an option to extend for an additional 20 years.
The initial annual rent for the portfolio is set at £2.5 million and is subject to inflation adjustments. The acquisition was funded through Alpha Real Trust's existing cash reserves and a loan covering approximately 65% of the purchase price. The company has also conditionally agreed to acquire a sixth crematorium for £8.8 million, with the transaction expected to be finalized by March 31, 2025.
The sale and leaseback arrangement enables Dignity to reduce its unsecured debt. For Alpha Real Trust, this investment represents an opportunity to secure a stable, inflation-linked income and add diversification to its holdings. The company continues to focus on high-return investments in asset-backed lending, debt, and property within Western Europe.
Alpha Real Trust expressed enthusiasm about the partnership with Dignity, citing the operator's track record in the UK crematoria market. The transaction involved representation by KLM Real Estate, Hogan Lovells, and DLA Piper for Dignity, while Augur Group and Penningtons Manches Cooper represented Alpha Real Trust.
This acquisition aligns with Alpha Real Trust's strategy of investing in assets that offer predictable cash flows and the potential for capital growth. The information is based on a press release statement.
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