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

Target Healthcare ReitAnnouncement

29/10/2014 08:10

RNS Number : 8364Q
Target Healthcare REIT Limited
04 September 2014
Target Healthcare REIT Limited
RNS Announcement
4 September 2014
Acquisition of Care Home in Hastings, East Sussex
Target Healthcare REIT Limited ("the Company"), a specialist investor in UK care homes, announces that it has exchanged contracts to acquire a new purpose-built care home in Hastings, East Sussex. The home will be acquired for approximately 8.0 million including acquisition costs in November 2014, when it is due to be completed, registered and opened. This transaction is in accordance with the Company's investment policy.
The four storey property has 80 bedrooms, each with full en-suite bathrooms with wetroom showers. It is constructed to a high standard and includes many facilities such as a bar/bistro, cinema room and hairdressing salon. Public spaces benefit from balconies with views over Hastings to the sea, and there are large attractive outdoor spaces for residents to use. 
The transaction will represent a sale and leaseback of the property from Hastings Court Limited. The lease will be for a period of 35 years, and the transaction represents an initial yield of in excess of 7%. The rent payable under the lease is subject to an annual RPI-linked uplift subject to a cap and collar.
Acquisition of this property is conditional upon the Company successfully completing the raising of additional equity as announced in the Circular of 18 June 2014. The Company has to date invested in excess of 116 million (including acquisition costs), through a combination of equity raised and the use of term loan and revolving credit facilities provided by the Royal Bank of Scotland plc.
Kenneth MacKenzie, Managing Partner of Target Advisers LLP, commented:
"This transaction will allow us to quickly invest equity raised into a good asset which will provide a high standard of care, in an attractive and welcoming environment. It will also broaden the Company's geographical spread to the south coast of England, and widen its tenant base. We have a number of other deals with both regional and national operators in advanced non-binding legal negotiations, and we expect to make further announcements soon."
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

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