REG - Target Healthcare - Acquisition <Origin Href="QuoteRef">THRLT.L</Origin>

Target Healthcare ReitAnnouncement

06/09/2014 16:25

For best results when printing this announcement, please click on the link
below:

http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20140714:nRSN1480Ma


RNS Number : 1480M
Target Healthcare REIT Limited
14 July 2014 
 
Target Healthcare REIT Limited 
 
RNS Announcement 
 
14 July 2014 
 
Acquisition of Three Purpose-Built Elderly Care Homes and Specialist Care
Facilities 
 
Target Healthcare REIT Limited ("the Company"), a specialist investor in UK
care homes, announces that it has acquired three purpose-built care homes and
four specialist care bungalows from Zest Investment Group for approximately
£20.4 million including acquisition costs. The acquisition is in accordance
with the Company's investment policy. 
 
Located in Norfolk and Northern Ireland, each of the care homes offers a
combination of residential, nursing and dementia care. One of the homes also
provides specialist care for individuals with learning disabilities, autism
and complex physical disabilities. 
 
Accommodating up to 255 residents, the properties offer a range of facilities,
including generously proportioned single bedrooms with en-suite wetroom
facilities; spacious public areas; as well as activity rooms, hair-dressing
salons and therapy rooms. 
 
The care homes will continue to be leased to the existing operator, Priory
Group, for a period of up to 28 years. The transaction represents an initial
yield in excess of 7% and the rents payable under the leases are subject to
fixed annual rental uplifts. 
 
Priory Group was established in 1980 and is the UK's largest provider of
mental health and elderly care services. The group operates 279 facilities
across four divisions nationally, including acute psychiatric hospitals;
secure and step-down mental health units; residential care homes; and
specialist schools and colleges. The elderly care division, Amore, was
established in 2009. 
 
The completion of this transaction means the Company has now invested in
excess of £110 million (including acquisition costs) funded via a combination
of equity and bank debt. As announced in the Circular of 18 June 2014 the
Company is discussing with its advisers a proposal to raise additional
equity. 
 
The selling agents on this transaction were Vector Property Group and Knight
Frank. 
 
Kenneth MacKenzie, Managing Partner of Target Advisers LLP, commented on the
acquisition: 
 
"Completing this acquisition not only adds a further three purpose-built
elderly care homes and specialist care facilities to the portfolio, but also
broadens the Company's tenant base with the inclusion of a well-established,
national operator. We continue to grow the Company's investment pipeline and
have approximately £30 million of deals in advanced, non-binding legal
negotiations." 
 
All enquiries: 
 
 Kenneth MacKenzieTarget Advisers LLP     01786 406 581                  
 Martin CasselsR&H Fund Services Limited  0131 524 6140                  
 Fiona Harris / Sam EmeryQuill PR         020 7466 5058 / 020 7466 5056  
 
 
This information is provided by RNS
The company news service from the London Stock Exchange