Target Healthcare REIT acquires Leicestershire care home
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Target Healthcare REIT , a specialist investor in UK care homes, has exchanged contracts to acquire a new 72-bed care home in Hinckley, Leicestershire.
The home will be acquired for about £6m including acquisition costs in July, when it is due to be completed and opened.
The care home will be leased to Care Concern Group for a period of 35 years and the transaction represents an initial yield in excess of 7%. The rent payable under the lease is subject to an annual uplift in line with the retail prices index subject to a cap and collar.
Headquartered in Slough, Care Concern Group currently operates 20 care homes across the UK. This is the second home which Care Concern operates in Target’s portfolio, along with Mossvale care home in Glasgow. Target has now invested or committed all of the £95.7m raised from institutional investors, wealth managers and private investors.
The company has also started to draw down the £30m committed term loan and revolving credit facility provided by the Royal Bank of Scotland.
Kenneth MacKenzie, managing partner of Target Advisers LLP, said the acquisition of the home in Hinckley allowed the company to bring a high quality purpose built asset into its portfolio and continue support for a tenant that puts a strong emphasis on quality of care.
“We have strong pipeline of deals across a range of locations with regional and national operators, and with about £44m of deals in advanced, non-binding legal negotiations we expect to announce further acquisitions soon,” he said.