Target Healthcare REIT Limited Acquisition of three new care homes (3887C)

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RNS Number : 3887C

Target Healthcare REIT Limited

13 April 2017

Target Healthcare REIT Limited

RNS Announcement

13 April 2017

Acquisition of three new care homes in Kent, Essex and Nottinghamshire

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 three purpose built care homes for a price of GBP20.9 million including acquisition costs:

-- Willow Park Lodge, is situated next to the main hospital in Dover, Kent, and was acquired for a total consideration of GBP6.1 million including costs. It has 79 large bedrooms over four floors, all with full ensuite bathrooms with wetroom showers. The home benefits from large lounges, with those at the front having impressive views across the town, as well as a hairdressing salon and dedicated cinema room.

Upon acquisition, the home was leased back to Athena Healthcare who developed the property, and is subject to a 35-year lease with RPI-linked uplifts with a cap and collar. This is the second home in the Group's portfolio with Athena, along with a home in Southport. Athena are a growing operator with three operational homes and several in advanced stages of development.

-- In line with previous announcements in 2016 when contracts were exchanged, the Group confirms that it has now completed on the acquisitions of two purpose-built care homes located in Kirby Cross near Frinton-on-Sea, Essex and Sutton-in-Ashfield, Nottinghamshire for a total consideration of approximately GBP14.8 million including acquisition costs. Care Concern leased Beaumont Manor near Frinton-on-Sea and Oakdale Care Group is the tenant at Kingfisher Court in Sutton-in-Ashfield.

These homes increased the Group's portfolio to 45 properties and means that funds invested in high quality care homes since the Group's inception total around GBP270 million, with a total of around GBP90 million committed since the Group's fundraise in May 2016.

John Flannelly, Investment Partner of Target Advisers LLP, commented on the acquisition:

"We are very pleased to announce completion of these transactions. We have been impressed with the quality of care which Athena offer and the addition of another home in the South East of England will enable us to further support their growth plans. In addition, the completion of the Frinton-on-Sea and Sutton-in-Ashfield transactions add further high quality assets and a new operator to the portfolio, further broadening our tenant base.

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 
  R&H Fund Services 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

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April 13, 2017 02:00 ET (06:00 GMT)