Acquisition of care home in Camberley, Surrey

RNS Number : 7656I

Target Healthcare REIT Limited

02 September 2016

 

Target Healthcare REIT Limited

RNS Announcement

2 September 2016

Acquisition of care home in Camberley, Surrey

Target Healthcare REIT Limited and its subsidiaries ("the Group"), 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 Mytchett near Camberley, Surrey, for approximately £6.5 million including acquisition costs.

Kingsmead House was completed in 2015 and offers luxurious accommodation with bedrooms looking onto peaceful landscaped gardens.  The home has 40 bedrooms over three floors, each with full en-suite wetroom facilities, and provides an attractive café/bar and large dining room acting as the social hub of the home.  Each floor also has its own lounge, and the home has hairdressing facilities and a putting green.  Specific consideration has been given to maximising natural light throughout.

Upon acquisition, the home was leased back to the existing tenant, Care Concern Group, who has operated the home since its opening.  The lease is for a term of 35-years and is subject to an RPI-linked cap and collar.  The net initial yield on the transaction is broadly consistent with the overall average of the Group's portfolio.  This will be the fifth home in the Group's portfolio leased to Care Concern, with two homes currently operating and contracts exchanged on a further two in Yorkshire and Essex.

Kenneth MacKenzie, Managing Partner of Target Advisers LLP, commented on the acquisition:

"We are very pleased to announce the acquisition of this home.  It reinforces our commitment to working with tenants who deliver high quality care in environments which are fit for purpose both now and into the future, and further increases our presence in the south east of England.

The transaction brings our total funds committed since our May 2016 fundraise to over £57 million, and we continue to progress other opportunities."

All enquiries:

Kenneth MacKenzie Target Advisers LLP	01786 845 912
Martin Cassels R&H Fund Services Limited	0131 550 3760
Fiona Harris / Sam Emery Quill PR	020 7466 5058 / 020 7466 5056

 

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