Target Healthcare has announced agreements worth £81.3m agreement to acquire eight care homes and 31 retirement apartments.
The four separate transactions were identified in advance of Target’s recent £80m equity placing.
John Flannelly, Head of Investment at Target Fund Managers (pictured), said: “Having completed the successful September fundraising, it is very pleasing to have deployed the proceeds so soon after, in a group of assets that meet our strict investment criteria and at yields that are consistent with previous similar acquisitions. At the same time, we are further strengthening the Group’s relationship with existing tenants whilst delivering continued portfolio diversification, a key focus for the Group. There is continued strong investor appetite for the stable and sustainable long duration rental income available from care home real estate, and we continue to develop our pipeline of further opportunities, leveraging our deep sector experience and proprietary in-house research capabilities.”
The acquisition include a portfolio of five modern, purpose-built homes with en-suite facilities, totalling 362 beds, which will be leased to existing tenant Bondcare.
A further two newly constructed care homes in Scarborough, North Yorkshire and Pudsey, West Yorkshire, totalling 172, with en-suite wetrooms, have been added to the portfolio. The homes will be leased to a subsidiary of existing tenant, Burlington Care.
The acquisitions additionally cover 31 Aura Care Living retirement living apartments, adjacent to the provider’s care home in Cirencester, Gloucestershire, as well as an 80-bed, care home in Christchurch, Dorset leased to a subsidiary of Encore Care Homes.