Acquisition of care home near Frinton-on-Sea,Essex

RNS Number : 5973B

Target Healthcare REIT Limited

20 June 2016

 

Target Healthcare REIT Limited

RNS Announcement

20 June 2016

Acquisition of care home near Frinton-on-Sea, Essex

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 exchanged contracts to acquire a purpose-built care home located in the village of Kirby Cross near Frinton-on-Sea, Essex.  The home will be acquired for approximately £9.2 million including acquisition costs, once works have been undertaken to complete the home to the Group's specification.  Completion of the transaction is expected in January 2017.  This transaction is in accordance with the Company's investment policy.

When completed the home will have 82 bedrooms over two floors in an impressive building set in grounds with views over neighbouring fields.  The home is constructed in a spacious style and will be completed to the highest standards, and will boast two large light-filled atriums, several lounges, a cinema room and a bar.  A number of rooms will feature separate lounge and bedroom areas, including their own kitchen.

Upon completion the property will be leased to existing tenant Care Concern group, and will be subject to a 35-year lease with RPI-linked cap and collar.  The net initial yield on the transaction is consistent with the overall average of the Group's portfolio.  This will be the fourth home in the Group's portfolio with Care Concern as tenant, following the completion of renovation works on Tapton Court in Sheffield expected in late summer 2016.

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

"We are very pleased to announce this exchange of contracts.  When completed this home will be a high quality offering to the local market with a tenant that provides care which helps enrich the lives of their residents.  This transaction is the fourth since our recent successful fundraise announced in early May 2016, and 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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