Target Healthcare REIT completes acquisition of 18 care homes

John Flannelly

Target Healthcare REIT has completed the acquisition of 18 care homes representing in excess of 1,200 beds.

The 18 homes are operated by eight tenants, three of which are new to the Group, including Barchester Healthcare, as well as two regional operators.

Combined with the group’s previous acquisition of a pre-let development site in Weymouth, the purchases take total quarterly investment to £173m, including costs.

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The acquisitions, which formed part of the pipeline of deals announced as part of the Company’s recent £125 million equity fund raise, will take the Group’s portfolio to 98 assets and to 32 tenants once the development site becomes operational in June 2022.

John Flannelly, Head of Investment at Target Fund Managers, (pictured) said: “The acquisition of the 18-care home portfolio increases the size of the Group’s existing portfolio by approximately 20% and demonstrates the Group’s ability to undertake transactions of scale. The quality of the real estate, combined with the diversified nature of the tenant base and the attractive pricing, underpins our investment thesis for this acquisition.

“On completion next year, the Weymouth asset will be a best-in-class care home in a location which demonstrates favourable demographics, whilst we are also pleased to be further diversifying our tenant base by partnering with a new, experienced operator in Chanctonbury Healthcare.

“These two transactions are strongly aligned with the Group’s strict investment criteria as we continue our highly disciplined approach to the deployment of capital. We have a number of other transactions at advanced stages of due diligence and expect to be in a position to make further announcements in due course.”

Tags : acquisitionsBarchester HealthcareFinanceTarget Healthcare REIT

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