Target Healthcare REIT raises £84 million for investment into UK care homes

Target Managing Partner Kenneth MacKenzie

Target Healthcare REIT has raised a £84 million fund from investors wanting to buy into the UK care home industry.

The company is the only publicly listed specialist investor in UK care homes, and has already put part of the fund to work with the acquisition of a 74-bed care home in Warrenpoint, Northern Ireland.

The deal was valued at around £5.75 million, including acquisitions costs.

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Warrenpoint is a portside town of around 7000 inhabitants in the South East of Northern Ireland.

The home, Carlinghford Lodge, is operated by Amore Care, a subsidiary of Priory Group, which will retain the contract for a 30 year term under the new ownership arrangements.

The rent payable under the lease is subject to annual uplifts of up to 3%. The Purchase price represents an initial yield in excess of 7%, Target Advisers says.

The home opened in 2011 and comprises of 74 single bedrooms with full en suite bathrooms including wetroom showers. It has a number of large resident lounges and dining rooms as well as a hairdressing and beauty salon and enclosed garden.

Kenneth MacKenzie (pictured above), managing partner of Target Advisers LLP, says: “We are delighted to announce the completion of this acquisition. This care home, operated by a tenant who is well known to us, adds another quality property to the group’s portfolio and increases our presence in Northern Ireland. We continue to work towards the timely deployment of the proceeds from our recent fundraise. To that end, we are progressing a number of additional opportunities and expect to make further announcements in relation to these in due course.”

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