Acquisition in South East England

RNS Number : 8980N

Target Healthcare REIT Limited

03 February 2016

 

Target Healthcare REIT Limited

RNS Announcement

3 February 2016

Acquisition of premium care home in South East England

Target Healthcare REIT Limited and its subsidiaries ("the Group"), the only UK listed specialist investor in UK Care Homes, announces that it has completed the acquisition of a premium, purpose-built care home in the south east of England for c.£14m (including transaction costs). This transaction is in accordance with the Group's investment policy.

The home was opened in 2011 and provides accommodation in luxurious surroundings in several acres of grounds in beautiful countryside. All the bedrooms have full ensuite facilities including wetroom showers with the home representing one of the highest quality care home environments in the UK.

The home will continue to be operated by the incumbent operator, under a 30 year lease, and they will become the 11^th operator in the Group's portfolio.   The rent payable under the lease comprises a base rent subject to RPI-linked uplifts and incorporating a cap and collar, as well as a share in the profits of the care home. The rental income to the Group will therefore be variable but is forecast to represent a net initial yield approaching 7% based upon current run rate trading.

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

"We are extremely pleased to announce the completion of this transaction.  This home is an excellent example of what can be achieved in the sector, and represents a very positive addition to the Target Healthcare REIT portfolio.   It also increases our presence in the south east of England, and adds another high quality operator to our Group.  We are continuing to evaluate a strong pipeline of potential transactions, including a number of deals in non-binding heads of terms, and expect to make further announcements in the near future." 

All enquiries:

Kenneth MacKenzie Target Advisers LLP	01786 845 912
Martin Cassels R&H Fund Services Limited	0131 550 3760
Mark Young, Roger Clarke, Neil Winward Stifel Nicolaus Europe Limited	020 7710 7600
Fiona Harris / Sam Emery Quill PR	020 7466 5058 / 020 7466 5056

 

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