Target Healthcare REIT Limited
RNS Announcement
14 November 2016
Acquisition of care home at Sutton-in-Ashfield, Nottinghamshire
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 town of Sutton-in-Ashfield, Nottinghamshire. The home will be acquired for approximately £5.6 million including acquisition costs. The transaction is expected to conclude by April 2017 once the build has been completed and the home has been fitted out to the Group and Operator's specifications.
The home is being constructed to the highest standards and will offer 66 bedrooms over three floors, all with en-suite wetrooms. Air conditioning will be provided to all communal areas and all floors will have large lounge / dining areas and quiet rooms. The resident balconies on both the first and second floors together with the landscaped gardens at ground floor level will enable all residents to easily access secure outdoor space.
Upon completion, the property will be leased to Oakdale Care Group ("Oakdale"), a newly established care home operator, and will be subject to a 35-year lease with RPI-linked cap and collar. Oakdale will become the Group's 16th tenant, thereby further diversifying 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 this exchange of contracts which once again demonstrates our ongoing commitment to improving the elderly care home offering by investing in new, purpose-built homes. Once completed this high-quality home in a location of strong demand will further complement our existing portfolio. This transaction also demonstrates our willingness to support proven management teams who evidence a strong care ethos.
The transaction brings our total funds committed since our May 2016 fundraise to c. £75 million. We continue to progress other opportunities."
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 |
