Target Healthcare REIT Limited Acquisitions in Leicestershire and Merseyside (7685K)
July 12 2017 - 2:00AM
UK Regulatory
TIDMTHRL
RNS Number : 7685K
Target Healthcare REIT Limited
12 July 2017
Target Healthcare REIT Limited
RNS Announcement
12 July 2017
Acquisition of new care home in Leicestershire and development
site in Merseyside
Target Healthcare REIT Limited and its subsidiaries ("the
Group"), the UK listed specialist investor in care homes, announces
that it has completed the acquisition of two properties for a total
value of GBP16.6 million (including acquisition and forward funding
costs):
-- The Amwell in Melton Mowbray, Leicestershire, is an 88 bed
home which opened its doors to residents in March 2017. Situated in
a prominent location adjacent to the town centre, the home boasts
large bedrooms over four floors and full ensuite bathrooms with
wetroom showers. The home benefits from excellent provision of
public space, including very large lounges with views over the
neighbouring park, a coffee shop, a cinema room and a gym. It is
set in a peaceful location alongside a river, with well laid out
gardens providing good outdoor space for residents and
visitors.
The home was purchased for GBP8.4 million including costs, and
leased back to Melton Care Limited who developed the property to
their own design. It is subject to a 35 year lease with RPI-linked
uplifts with a cap and collar. Melton Care is a joint venture
between Magnum Care, a Leicestershire-based operator, and the
principals behind Care Concern, the national operator with whom the
Group have worked in a number of homes.
-- The Group has also acquired a development site and entered
into a forward funding opportunity in Birkdale, Merseyside. The
site received planning in early 2017 for a high quality care home.
The Group intends to fund the development of this home under a
capped development contract, to have 55 large bedrooms with
en-suite facilities with wetroom showers and good public space in
an impressive building on this corner location.
The development will be carried out in partnership with Athena
Healthcare, who have entered into an agreement to lease the
property on completion at an agreed rental level. The lease will
again be for 35 years with RPI uplifts subject to cap and collar.
The home will target the premium residential market, and once
completed will become the third home in the Group's portfolio with
Athena, a growing operator with three operational homes and several
further in development.
The home is expected to complete by March 2019, with a total
development price of around GBP8.2 million including costs.
Yield across the two assets is broadly consistent with that seen
on the Group's existing portfolio. These homes increase the Group's
portfolio to 47 properties and means that funds invested in high
quality care homes since the Group's inception total around GBP285
million, including around GBP105 million committed since the
Group's fundraise in May 2016.
John Flannelly, Investment Partner of Target Advisers LLP,
commented on the acquisitions:
"We are extremely pleased to announce completion of these
transactions. The Amwell is a very high quality home in a fantastic
setting. We know both Magnum Care and Care Concern well and have
been impressed with their ability to deliver great care. The
forward funding opportunity in Birkdale allows the Group to expand
in an affluent area with a respected operator and developer, and
will provide a further impressive addition to the portfolio in due
course.
We continue to progress other opportunities and expect to make
more announcements in the near future."
All enquiries:
Kenneth MacKenzie / John
Flannelly
Target Advisers LLP 01786 845 912
Martin Cassels
Maitland Administration
Services (Scotland) Limited 0131 550 3760
Fiona Harris / Sam Emery 020 7466 5058 / 020 7466
Quill PR 5056
This information is provided by RNS
The company news service from the London Stock Exchange
END
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