Target Healthcare REIT Limited Acquisitions in Shropshire and Lancashire (8334I)
26 March 2018 - 5:00PM
UK Regulatory
TIDMTHRL
RNS Number : 8334I
Target Healthcare REIT Limited
26 March 2018
Target Healthcare REIT Limited
RNS Announcement
26 March 2018
Acquisitions
Target Healthcare REIT Limited and its subsidiaries ("the
Group"), the UK listed specialist investor in care homes, announces
that it has entered into contracts to acquire and forward fund two
new care homes located near Shrewsbury, Shropshire and in Preston,
Lancashire, for a cost of approximately GBP15.6 million. The
completed care homes will be let to Rotherwood Healthcare and
L&M Healthcare respectively.
Both properties received planning consent in 2017 and the Group
intends to fund the development of the sites into 68-bed and a
74-bed homes respectively. Both properties will comprise full
en-suite wetroom facilities, large public spaces and a high-quality
fit-out.
The developments are to be undertaken on the basis of fixed
price contracts with the developers, and the completed homes will
be let on long-term (30+ years), RPI-linked leases subject to caps
and collars. Consistent with previous forward funding
opportunities, the Group will earn a coupon through the
construction phase which will support its progressive dividend
objective.
The Shropshire home will replace an existing 45 bed home, being
one of six care homes currently operated by Rotherwood Healthcare.
On practical completion, the Preston care home will become the
fifth high-quality care home operated by L&M Healthcare across
the North West of England. Both operators will be new tenants to
the Group.
Both homes are due to open during 2019. The yields across the
transactions are consistent with those outlined to shareholders in
the recent capital raise.
John Flannelly, Head of Investment at Target Fund Managers,
commented on the acquisitions:
"Having discussed both of these assets with shareholders in the
recent capital raise, we are delighted to announce the completion
of these transactions within the timetable we outlined. These
transactions allow us to add additional high-quality, purpose-built
homes to the portfolio, and work further with the operators to
leverage their experience and grow their offerings in their
respective geographic areas.
We continue to progress other opportunities and expect to make
more announcements in the near future."
All enquiries:
Kenneth MacKenzie / John Flannelly
Target Fund Managers 01786 845 912
Martin Cassels
Maitland Administration Services
(Scotland) Limited 0131 550 3760
Fiona Harris / Sam Emery
Quill PR 020 7466 5058 / 020 7466 5056
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQPGUMCWUPRGMW
(END) Dow Jones Newswires
March 26, 2018 02:00 ET (06:00 GMT)
Target Healthcare Reit (LSE:THRL)
Historical Stock Chart
From Apr 2024 to May 2024
Target Healthcare Reit (LSE:THRL)
Historical Stock Chart
From May 2023 to May 2024