Target Healthcare REIT has transferred six former Orchard Care homes to new tenants.
The homes have been transferred to the Group’s existing operators Burlington Care and Sandstone Care following Orchard Care Homes’ announcement in September that it was exiting the services.
Kenneth MacKenzie, CEO of Target Fund Managers, (pictured) said: “As an engaged landlord, we seek to have continual constructive dialogue with several levels of management across our tenant base. Following the announcement in September 2019 that Orchard Care Homes had given notice to us of their intention to exit the leases across six assets held by the Group, we entered into discussions with a range of parties with a view to re-tenanting the care homes in short order.
“Testament to our diverse tenant pool, future-proofed real estate and the underlying local supply and demand fundamentals underpinning the attractiveness of our care homes across the portfolio, we are pleased to announce the successful re-tenanting of all six care homes to two existing tenants of the Group.”
Burlington Care now operates the three former Orchard in Yorkshire with Sandstone Care taking the remaining three in the north-west.
The announcement came as Target Healthcare REIT provided an update on its corporate activity, in which Kenneth commented: “Following the oversubscribed £80 million equity fundraise in September 2019, the recent acquisitions mean that the complete £92 million pipeline of assets identified at the time of the fundraise has now been acquired by the Group.
“Despite increased activity from market participants, we continue to see investment opportunities and, subject to progression through our extensive due diligence procedures, we envisage the deployment of the remainder of the Group’s investable capital in the coming months.”
