Target acquires Kingston-upon-Hull care home for £6.2 million

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Target Healthcare REIT-Care Industry News (300 x 60)Target Healthcare REIT Limited and its subsidiaries the only listed specialist investor in UK care homes, announces that it has exchanged contracts to acquire a purpose-built care home in Kingston-upon-Hull for approximately £6.2 million including acquisition costs. This transaction is in accordance with the Group’s investment policy.

The home, Alexandra Court Care Centre, is a modern, three-storey property comprising 84 bedrooms with full en-suite bathrooms including wetroom showers. Each floor benefits from a number of large resident lounges, dining rooms and “quiet rooms” and the property also includes two treatment rooms and a hair-dressing salon.

The tenant is Arrow Healthcare Limited who will engage the services of specialist elderly care home operator, Healthcare Management Solutions, to operate the home under a management services agreement. The rent payable under the lease comprises a base rent subject to annual RPI-linked uplifts and incorporating a cap and collar, as well as a share in the profits of the care home. The income to the Group is forecast to represent a net initial yield in excess of 7%.

Completion of the transaction is expected within the next three months upon registration of the incoming tenant with the Care Quality Commission.

Kenneth MacKenzie, Managing Partner of Target Advisers LLP, commented:

“We are delighted to announce the acquisition of this home, adding as it does another quality property to the Group’s growing portfolio as well as further expanding the tenant base. We continue to assemble a pipeline of quality transactions on behalf of the Group and currently have approximately £15 million of deals in non-binding legal negotiations. These transactions, when completed, will see a significant proportion of the equity raised in March invested.” 

 

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