REG - Target Healthcare - Acquisition of care home in Southport, Merseyside <Origin Href="QuoteRef">THRLT.L</Origin>

Target Healthcare ReitAnnouncement

19/05/2016 16:05

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 12th 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

This information is provided by RNS
The company news service from the London Stock Exchange
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