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Target Healthcare REIT enters £37m loan facility

Gordon Bland 05

UK-listed specialist investor in modern, purpose-built care homes, Target Healthcare REIT, has entered into a long-term committed term loan facility with existing lending partner, Phoenix Group.

The facility is part of a total of £100m in new loan facilities for the group with completion of the remaining £63m expected to be aligned with the acquisition of a portfolio of 18 modern care homes.

Gordon Bland, Finance Director of Target Fund Managers, (pictured) said: “Entering into another facility with Phoenix is testament to both the continued strength of our relationship with our existing lenders and the attractiveness of the Target model.

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“The portfolio’s performance during COVID has been robust, with the quality of our real estate and our tenants’ ability to astutely manage their businesses providing an attractive proposition to lenders. This additional debt funding for the group aligns with our strategy of continuing to grow the platform sustainably alongside efficiently managing the capital structure.

“Importantly, in an environment where the future outlook for interest rates remains uncertain, fixing a significant proportion of our interest costs when combined with our inflation-linked income profile helps us to provide sustainable and progressive long-term returns to shareholders.”

In its annual results in October, Target Healthcare REEIT announced a 10.9% rise in portfolio value in the year ended 30 June 2021.

Tags : FinanceTarget Healthcare REIT
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