Target Healthcare ,the UK listed specialist investor in modern, purpose-built care homes, announces that it has agreed the acquisition of eight care homes and 31 retirement apartments, in four separate transactions, for a total consideration of £81.3 million including transaction costs. The acquisitions, which had been identified in advance of the Group’s recent £80 million equity placing, will mean the rapid deployment of the majority of shareholders’ funds, reducing the potential for cash drag.
Details of the individual transactions are as follows:
- Completed the acquisition of a portfolio of five care homes, totalling 362 bedrooms, in Yorkshire to be let to an existing tenant of the Group;
- Exchanged contracts to acquire a further two care homes in Yorkshire to be let to an existing tenant. This transaction will complete once the second home has received CQC registration, which is expected before the year end;
- Completed the acquisition of the freehold of 31 retirement living apartments in Gloucestershire, managed by an existing Group tenant; and
- Completed the acquisition of an operational care home in Dorset which adds a new operator to the Group.
The acquisition yield on the care home transactions is representative of assets of a similar standard and location within the Group’s portfolio, and all have the benefit of long-term occupational leases with RPI-linked cap and collars.
UK listed Target Healthcare REIT plc is an externally managed Real Estate Investment Trust which aims to provide shareholders with an attractive level of income, together with the potential for capital and income growth, through the assembly and management of a portfolio of modern, purpose-built care homes.
The Group’s portfolio at 30 September 2019 comprised 63 assets let to 26 different tenants, with a total portfolio value of £511.4m.
Source : Company