Target Healthcare REIT Limited Acquisition of Care Homes (2861I)

TIDMTHRL

RNS Number : 2861I

Target Healthcare REIT Limited

30 August 2016

Target Healthcare REIT Limited

RNS Announcement

30 August 2016

Acquisition of 2 care homes let to Hudson Healthcare

Target Healthcare REIT Limited and its subsidiaries ("the Group"), the only listed specialist investor in UK care homes, is pleased to announce that it has completed the acquisition of two modern, purpose built care homes located in Dundee, Scotland and Sandiacre, Derbyshire for approximately GBP14.0 million including acquisition costs.

The properties comprise a total of 151 bedrooms with full en-suite bathrooms including wetrooms and opened in 2007 and 2015. A refurbishment programme on the older property will be completed imminently with both properties due to reach operational maturity by the year end. Each home is located in areas with strong demographics and provide a high level of amenities, lounges and good sized bedrooms as well as access to pleasant secure outdoor areas.

The homes will continue to be operated by the incumbent operator, Hudson Healthcare who will become the 14th tenant of the Group, thereby further diversifying the Group's tenant base. The homes are subject to 35-year leases with RPI-linked cap and collar. The net initial yield on the transaction is broadly consistent with the overall average of the Group's portfolio.

Kenneth MacKenzie, Managing Partner of Target Advisers LLP, commented on the acquisition:

"We are delighted to announce the completion of this acquisition which adds a further two quality assets and a new operator to the Group's portfolio. The transaction brings our total funds committed since the May 2016 fundraise to over GBP50 million. We continue to assess other opportunities whilst also constantly monitoring the economic environment to ensure that our strategy remains appropriate."

All enquiries:

 
 Kenneth MacKenzie 
  Target Advisers LLP          01786 845 912 
 Martin Cassels 
  R&H Fund Services Limited    0131 550 3760 
 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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August 30, 2016 02:00 ET (06:00 GMT)