NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, TO US PERSONS OR IN OR INTO THE UNITED STATES, OR INTO OR FROM CANADA, AUSTRALIA, JAPAN, NEW ZEALAND AND THE REPUBLIC OF SOUTH AFRICA.
This announcement is an advertisement and not a prospectus. This announcement does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities in Target Healthcare REIT Limited (the "Company") or securities in any other entity, in any jurisdiction, including the United States, nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or investment decision whatsoever, in any jurisdiction. This announcement does not constitute a recommendation regarding any securities. Any investment decision must be made exclusively on the basis of the final prospectus published by the Company and any supplement thereto.
Target Healthcare REIT Limited
RNS Announcement
9 October 2013
Acquisition of Two Modern, Purpose-Built Care Homes in the North West of England and Publication of a Prospectus
Target Healthcare REIT Limited ("the Company"), a specialist investor in UK care homes, announces that it has acquired two purpose-built care homes in the North West of England, for approximately £11.5 million including acquisition costs.
Located in Longridge, near Preston, Lancashire and St Helens, Merseyside, both properties are modern, purpose-built homes and were acquired from a private investor. The acquisition is in accordance with the Company's investment policy and the consideration is in line with market value.
The homes are well appointed and benefit from generously proportioned bedrooms each of which has en-suite wet room facilities. Accommodating up to 154 residents across the two homes, the public spaces are welcoming and spacious, and on-site facilities include a variety of quiet lounges and dining areas as well as a hair-dressing salon and landscaped gardens. Both homes offer residential and dementia care and their simple, yet practical, designs enable staff to work efficiently and discreetly.
The care homes will continue to be leased to existing operator Orchard Care Homes for a period of approximately 30 years and the transaction represents an initial yield in excess of 7%. The rent payable under the lease is subject to an annual uplift in line with the retail prices index subject to a cap and collar.
Orchard Care Homes was formed in 2005, and operates more than 110 care homes and employs around 6,000 staff. Orchard Care Homes represents the third tenant in the Company's portfolio, in addition to the Balhousie Care Group and Ideal Care Homes.
The completion of this transaction sees the Company's investment portfolio increase to ten care homes since it listed its shares on the London Stock Exchange's Main Market on 7 March 2013 and follows shortly on from the acquisition of a care home in Thirsk, North Yorkshire at the end of September 2013.
Kenneth MacKenzie, Managing Partner of Target Advisers LLP, commented on the acquisition:
"We are delighted to have completed this acquisition, adding a further two modern, purpose-built care homes to the portfolio as well as broadening the Company's geographic footprint and tenant base."
Publication of Prospectus
Following these acquisitions the Company is now fully invested. Accordingly, the Company is also pleased to announce that it has today received approval from the UK Listing Authority to publish its prospectus in relation to the placing and offer for subscription of up to 45 million new ordinary shares in the capital of the Company together with the option to increase the size of the Issue by a further 30 million ordinary shares and the application for the admission of these new ordinary shares to the premium segment of the Official List and to trading on the London Stock Exchange's main market.
Expected timetable of principal events |
Event |
2013 |
Placing and offer for subscription opens |
8.00 a.m. on 10 October |
Latest time and date for receipt of Form of Proxy |
2.00 p.m. on 23 October |
Latest time and date for receipt of application forms under the Offer |
6.00 p.m. on 23 October |
Latest time and date for receipt of commitments under the placing |
6.00 p.m. on 24 October |
General Meeting |
2.00 p.m. on 25 October |
Admission and dealings in ordinary shares commence |
8.00 a.m. on 28 October |
Crediting of CREST accounts in respect of the ordinary shares |
8.00 a.m. on 28 October |
Share certificates in respect of the ordinary shares despatched (where applicable) |
week commencing 4 November |
Further information
Copies of the prospectus are available from the Company's website: http://www.targethealthcarereit.co.uk and from the offices of Dickson Minto W.S., which is situated at Broadgate Tower, 20 Primrose Street, London EC2A 2EW. In addition, a copy of the Prospectus will shortly be submitted to the National Storage Mechanism and will be available for inspection at www.hemscott.com/nsm.do.
*Neither the NSM website nor the Company's website nor the content of any website accessible from hyperlinks on those websites (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of, this announcement.
All enquiries:
Kenneth MacKenzie Target Advisers LLP |
01786 406 581 |
Martin Cassels R&H Fund Services Limited |
0131 524 6140 |
Fiona Harris / Sam Every Quill PR |
020 7466 5058 / 020 7466 5056 |
