Target Healthcare REIT, a UK investor in modern, purpose-built care homes, has announced its intention to raise £50 million to help fund potential deals.
The company has identified an investment pipeline of £224 million, consisting of £47 million of imminent acquisition assets, including three operation care homes and one forward funding project; and £177 million of ‘near-term’ pipeline deals, which are currently in negotiations.
The near-term pipeline deals include 10 operational modern care homes, five forward funding projects and one forward commitment to acquire and a pre-let care home upon construction reaching ‘practical completion’.
Malcolm Naish, Chairman of the company, said: “The very challenging period we have come through has clearly shown that the kinds of assets we own, together with the operational capabilities of our dedicated and professional occupier base, are well-placed to manage the complex requirements of the care home sector and its residents. The momentum behind the underlying fundamentals of the sector remains unchanged, as reflected in the record level of enquiries last month which was reported by one of the company’s largest tenants, and with the roll out of the vaccination programme progressing well, we are in a position now to respond to that demand.
“The pandemic has starkly underlined the critical need for more high quality, well designed care homes. While we prudently paused our investment programme in the first half of 2020, we now believe there is sufficient visibility to return to our disciplined acquisition strategy. We have identified a strong pipeline of attractive potential investments and the structure of the fundraise we are announcing today provides us with the flexibility to be selective, but also to act quickly in a competitive market.”