Target Healthcare REIT Limited and its subsidiaries, the only listed specialist investor in UK care homes, is pleased to announce that it has completed the acquisition of a care home in Halifax, West Yorkshire, for approximately £7.2 million including acquisition costs. This transaction is in accordance with the Group’s investment policy.
The home, Summerfield House, is a modern purpose-built facility with 106 beds over three floors, having been opened in 2011. Situated in a prominent position near the centre of Halifax, the home sits in pleasant grounds and benefits from a number of lounges, dining rooms, a coffee shop and a hairdressing salon.
Upon acquisition the home was let to a subsidiary of the Bondcare Group, the national care group founded in 1996. Bondcare is an existing tenant of the Group, operating homes in Birmingham and Nottingham which are also in the Group’s portfolio. The home is subject to a 35-year lease with RPI-linked cap and collar. The net initial yield on the transaction is consistent with the overall average of the Group’s portfolio.
Kenneth MacKenzie, Managing Partner of Target Advisers LLP, commented on the acquisition:
“We are pleased to announce the acquisition of this home, which adds a further good quality asset to our portfolio and allows us to support the growth of an existing tenant’s business. This acquisition was contemplated during our recent successful fundraise and we continue to progress other opportunities as we look to invest those proceeds in a timely fashion. We expect to make further announcements in due course.”