Acquisition of care home in Northern Ireland

RNS Number : 8325X

Target Healthcare REIT Limited

10 May 2016

 

Target Healthcare REIT Limited

RNS Announcement

10 May 2016

Acquisition of care home in Warrenpoint, Northern Ireland

Following the announcement this morning of the Company's successful £84 million fundraising, 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 Warrenpoint, Northern Ireland for approximately £5.75 million including acquisition costs. This transaction is in accordance with the Group's investment policy.

The home, Carlingford Lodge, was opened in 2011 and comprises of 74 single bedrooms with full ensuite bathrooms including wetroom showers. It also benefits from a number of large resident lounges and dining rooms as well as a hairdressing and beauty salon and enclosed garden.

The home will continue to be operated by the incumbent operator, a subsidiary of the Priory Group. The existing lease is for a 30 year term with circa 25 years remaining. The rent payable under the lease is subject to annual uplifts of up to 3%. The Purchase Price represents an initial yield in excess of 7%.

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

"We are delighted to announce the completion of this acquisition. This care home, operated by a tenant who is well known to us, adds another quality property to the Group's portfolio and increases our presence in Northern Ireland. We continue to work towards the timely deployment of the proceeds from our recent fundraise. To that end, we are progressing a number of additional opportunities and expect to make further announcements in relation to these in due course."

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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