Target announces acquisition of care homes on Tyneside

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Target Healthcare REIT-Care Industry News (300 x 60)Target Healthcare REIT Limited and its subsidiaries, the only UK listed specialist investor in UK Care Homes, announces that it has completed the acquisition of two purpose-built care homes on Tyneside for approximately £12.75m (including acquisition costs).  This transaction is in accordance with the Group’s investment policy.

The properties were built in 2010 and 2015 and comprise a total of 169 bedrooms with full en-suite bathrooms including wetroom showers.  Each is situated in a densely populated local area and provides a high level of amenities, lounges and good sized bedrooms for the benefit of residents, as well as access to pleasant secure outdoor areas. 

The homes will continue to be operated by the incumbent operator, a long-established care home provider in the area who will become the 10th tenant of the Group.  The rent payable under the 35 year lease is subject to annual RPI-linked uplifts and incorporating a cap and collar.  The net initial yield is broadly consistent with the overall average yield of the existing portfolio.

The Group has invested in excess of £160 million in high quality care homes since 2013. 

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

“We are delighted to announce this transaction, with the addition of two care homes of a very high standard to the Group’s growing portfolio along with a further expansion of our geographical and tenant base.” 

 

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