Specialist investor in modern, purpose-built care homes, Target Healthcare, has acquired a Scottish care home and a development site in Buckinghamshire for £33m.
The care home in Scotland will be operated on a 35-year lease by existing tenant, Caring Homes group, which operates two other homes in the REIT’s portfolio.
Target Healthcare also acquired a development site in Olney, Buckinghamshire and has entered into a development agreement to deliver a new pre-let care home that will be leased to existing tenant, Kingsley Healthcare, on a 35-year basis.
Having received planning consent in March 2021, construction work is due to commence in H2 2021 with practical completion targeted for H1 2023.
John Flannelly, Head of Investment at Target Fund Managers, (pictured) said: “We are very pleased to announce the completion of these two transactions. The Scottish care home, which was part of the pipeline of assets included in our most recent equity fundraise, adds a market-leading care home to the group’s portfolio – one which provides impressive facilities for its residents and allows the delivery of great care in outstanding surroundings – and we are delighted to be further developing our relationship with Caring Homes.
“The Buckinghamshire asset will be a best in class care home and we are excited to be collaborating with Kingsley on this development which is expected to be the first in a series of new projects with this highly regarded operator.
“These two transactions are fully aligned with the group’s strict investment criteria as we continue our highly disciplined approach to the deployment of capital. All the equity raised in March 2021 is allocated to Board approved acquisitions that are in advanced stages of due diligence.”