Target Healthcare REIT Limited and its subsidiaries (“the Group”), the only UK listed specialist investor in care homes, announces that it has completed the acquisition of a purpose built care home in Tonbridge, Kent for approximately £12.2 million including acquisition costs. The Group had previously entered into a forward commitment to acquire this property.
This is a purpose built home which was completed in early October 2016. It comprises 101 bedrooms with full en-suite bathrooms including wet rooms over three floors. Each floor has its own lounge and the home also benefits from quiet rooms, a hairdressing salon and a therapy room. There is generous outdoor space which includes an attractive landscaped garden as well as balconies for the upper floors.
The home is let to the Abbeyfield Kent Society, a charitable organisation which provides care and housing to over 350 people at 14 locations across Kent, East Sussex and the London Borough of Bromley . The lease is for a 30 year term with RPI-linked uplifts subject to a cap and collar. Abbeyfield Kent is the Group’s 15th tenant and further diversifies the Group’s tenant base. The net initial yield on the transaction is slightly below the overall average of the Group’s portfolio, reflecting the strong location of the asset.
Kenneth MacKenzie, Managing Partner of Target Advisers LLP, commented on the acquisition:
“We are extremely pleased to announce completion of this transaction which both increases our exposure to the south east and adds another high quality tenant to the portfolio. By enabling The Abbeyfield Kent Society to move residents from an existing property to this new, purpose built care home, this transaction further demonstrates our ongoing commitment to support care home operators in delivering the highest standards of care in exceptional surroundings.
The transaction brings our total funds committed since our May 2016 fundraise to c. £70 million. We continue to progress other opportunities.”