Target Healthcare REIT acquires three care homes and specialist facilities
Caring Times Latest
Target Healthcare REIT has acquired three care homes and four specialist care bungalows from Zest Investment Group for about £20.4m including acquisition costs.
Located in Norfolk and Northern Ireland, each of the care homes offers a combination of residential, nursing and dementia care. One of the homes also provides specialist care for individuals with learning disabilities, autism and complex physical disabilities.
Accommodating up to 255 residents, the properties offer a range of facilities, including generously proportioned single bedrooms with en-suite wetroom facilities; spacious public areas; as well as activity rooms, hair-dressing salons and therapy rooms.
The care homes will continue to be leased to the existing operator, Priory Group, for a period of up to 28 years. The transaction represents an initial yield in excess of 7% and the rents payable under the leases are subject to fixed annual rental uplifts.
Priory Group was established in 1980 and is the UK’s largest provider of mental health and elderly care services. The group operates 279 facilities across four divisions nationally, including acute psychiatric hospitals; secure and step-down mental health units; residential care homes; and specialist schools and colleges. The elderly care division, Amore, was established in 2009.
The completion of this transaction means Target has now invested more than £110m (including acquisition costs) funded via a combination of equity and bank debt. The company is now considering raising additional equity.