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 modern, purpose built care home in Cheltenham, Gloucestershire for approximately £7.9 million including acquisition costs.
The home was completed in 2010 and the striking modern design was award-nominated. It comprises 66 bedrooms with full en-suite bathrooms with wetroom showers, spread over four floors. The home is situated in a large site featuring mature trees and landscaped grounds, and boasts a number of lounges, dining rooms and a cinema room.
Upon acquisition the home was let to a subsidiary of Caring Homes group, the UK-wide care home operator. Caring Homes becomes the Group’s 13th tenant, enhancing and further diversifying the tenant base with which the Group works. 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 delighted to announce the completion of this acquisition which adds another high quality asset in a location of strong demand. We are excited to add Caring Homes to our growing list of tenants. This transaction is the fifth to be announced since our recent successful fundraise in May, with a cumulative total value of approximately £36.7 million committed to these acquisitions, and we continue to progress other opportunities. We expect to make further announcements in due course.”