Acquisition of care home in Southport, Merseyside

RNS Number : 7849Y

Target Healthcare REIT Limited

19 May 2016

 

Target Healthcare REIT Limited

RNS Announcement

19 May 2016

Acquisition of care home in Southport, Merseyside

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 Southport, Merseyside for approximately £6.6 million including acquisition costs. This transaction is in accordance with the Group's investment policy.

The home, Parklands Lodge, is newly constructed having opened its doors to residents in early May.  It comprises 67 bedrooms with full ensuite bathrooms including wetroom showers. The home benefits from a number of lounges with pleasant outlooks, as well as a hairdressing salon and large lawned gardens to the side and rear of the property.

Upon acquisition, the home was leased back to Athena Healthcare who developed the property, and is subject to a 35-year lease with RPI-linked uplifts with a cap and collar.  Athena, a local operator who has another home nearby, is the Group's 12^th tenant and therefore further diversifies the Group's tenant base.  The net initial yield on the transaction is consistent with the overall average of the Group's portfolio.

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

"We are very pleased to announce the completion of this acquisition which adds a further high quality asset to our portfolio and allows us to work with a new tenant who we believe will deliver high quality care.  This transaction was contemplated prior to our recent successful fundraise, and we continue to progress other opportunities as we look to deploy those proceeds in a timely fashion.  We expect to make further announcements 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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