REG - Target Healthcare - Acquisitions in Shropshire and Lancashire

Target Healthcare ReitAnnouncement

26/03/2018 07:05

RNS Number : 8334I
Target Healthcare REIT Limited
26 March 2018
 

Target Healthcare REIT Limited
RNS Announcement
26 March 2018
Acquisitions
Target Healthcare REIT Limited and its subsidiaries ("the Group"), the UK listed specialist investor in care homes, announces that it has entered into contracts to acquire and forward fund two new care homes located near Shrewsbury, Shropshire and in Preston, Lancashire, for a cost of approximately £15.6 million. The completed care homes will be let to Rotherwood Healthcare and L&M Healthcare respectively.
Both properties received planning consent in 2017 and the Group intends to fund the development of the sites into 68-bed and a 74-bed homes respectively. Both properties will comprise full en-suite wetroom facilities, large public spaces and a high-quality fit-out.
The developments are to be undertaken on the basis of fixed price contracts with the developers, and the completed homes will be let on long-term (30+ years), RPI-linked leases subject to caps and collars. Consistent with previous forward funding opportunities, the Group will earn a coupon through the construction phase which will support its progressive dividend objective.
The Shropshire home will replace an existing 45 bed home, being one of six care homes currently operated by Rotherwood Healthcare. On practical completion, the Preston care home will become the fifth high-quality care home operated by L&M Healthcare across the North West of England. Both operators will be new tenants to the Group.
Both homes are due to open during 2019. The yields across the transactions are consistent with those outlined to shareholders in the recent capital raise.
John Flannelly, Head of Investment at Target Fund Managers, commented on the acquisitions:
"Having discussed both of these assets with shareholders in the recent capital raise, we are delighted to announce the completion of these transactions within the timetable we outlined. These transactions allow us to add additional high-quality, purpose-built homes to the portfolio, and work further with the operators to leverage their experience and grow their offerings in their respective geographic areas.
We continue to progress other opportunities and expect to make more announcements in the near future."
All enquiries:




Kenneth MacKenzie / John Flannelly
Target Fund Managers
 


01786 845 912




Martin Cassels
Maitland Administration Services (Scotland) Limited
 


0131 550 3760




Fiona Harris / Sam Emery
Quill PR


020 7466 5058 / 020 7466 5056




 



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