Target Healthcare buys care homes and retirement flats in £81m deal
Care home investor Target Healthcare has snapped up 39 properties across the UK in an £81.3 million deal.
The real estate investment trust has agreed to buy seven care homes in Yorkshire, a facility in Dorset and 31 retirement apartments in Gloucestershire.
The acquisitions follow an £80 million share placing by the company in September, which it said would fund expansion opportunities.
Target said the acquisitions had been identified prior to the fundraiser and added that it was “very pleasing” that it was able to use the funds so swiftly.
The purchases of five of the care homes have been completed, while contracts have been exchanged on the two other care homes, which will all be let back to current tenants.
John Flannelly, head of investment at Target Fund Managers, said: “Having completed the successful September fundraising, it is very pleasing to have deployed the proceeds so soon after, in a group of assets that meet our strict investment criteria and at yields that are consistent with previous similar acquisitions.
“At the same time, we are further strengthening the group’s relationship with existing tenants whilst delivering continued portfolio diversification, a key focus for the group.
“There is continued strong investor appetite for the stable and sustainable long-duration rental income available from care home real estate, and we continue to develop our pipeline of further opportunities, leveraging our deep sector experience and proprietary in-house research capabilities.”
The acquisitions came as Target reported a quarterly business update which revealed a 0.7% increase in like-for-like value to £511.4 million across its portfolio for the period to September 30.