Target Healthcare REIT Limited
RNS Announcement
3 February 2014
Acquisition of a Modern, Purpose-Built Care Home in Scotland
Target Healthcare REIT Limited ("the Company"), a specialist investor in UK care homes, announces that it has acquired the feuhold of a 61-bed, purpose-built care home in Scotland, for approximately £4.3 million including acquisition costs.
Located in the suburbs of Glasgow, Scotland's largest city, the care home is a modern facility which was opened in November 2013. The acquisition is in accordance with the Company's investment policy and the consideration is in line with market value.
The home provides twenty four hour nursing care for residents, as well as offering respite care and day care services. Built over two floors, the property features generously proportioned bedrooms, each of which include en-suite wet room facilities. The home benefits from large public spaces which are pleasantly furnished as well as a broad range of facilities, including a variety of quiet lounges and dining areas, landscaped gardens, a hair-dressing salon and cinema room.
The care home is leased to existing operator Mossvale Care Home Limited for a period of 30 years and the transaction represents an initial yield in excess of 7.75%. 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.
Mossvale Care Home Limited developed the property and now forms part of the Care Concern Group. Headquartered in Slough, Care Concern Group currently operates 22 care homes across the UK and represents the Company's fourth tenant.
The completion of this transaction sees the Company's investment portfolio increase to eleven care homes since it listed its shares on the London Stock Exchange's Main Market on 7 March 2013 and represents its first acquisition since it successfully raised £45.5m in the last quarter of 2013. The Company maintains a good pipeline of investment opportunities and is currently in advanced negotiations to acquire further properties.
Kenneth MacKenzie, Managing Partner of Target Advisers LLP, commented on the acquisition:
"We are delighted to have completed this acquisition, adding another modern, purpose-built care home to the portfolio as well as continuing to broaden the Company's tenant base."
All enquiries:
Kenneth MacKenzie Target Advisers LLP |
01786 406 581 |
Martin Cassels R&H Fund Services Limited |
0131 524 6140 |
Fiona Harris / Sam Emery Quill PR |
020 7466 5058 / 020 7466 5056 |
