Target Healthcare REIT Limited Acquisition of homes in Cirencester and Camberley (9846S)
29 June 2018 - 4:01PM
UK Regulatory
TIDMTHRL
RNS Number : 9846S
Target Healthcare REIT Limited
29 June 2018
29 June 2018
Target Healthcare REIT Limited and its subsidiaries
("Target Healthcare" or "the Group")
Acquisition of two high quality care homes in Cirencester and
Camberley for GBP37 million
Target Healthcare (LSE: THRL), the UK's listed specialist
investor in modern, purpose-built care homes, announces that it has
completed the acquisition of two luxury properties in Cirencester
and Camberley, for a total consideration of GBP37 million
(including acquisition costs).
Both assets are let to subsidiaries of Aura Care Living ("Aura")
which becomes the Group's twenty-first tenant, hence providing
further tenant diversification to the Group. The assets are let on
30 year fully repairing and insuring occupational leases with
RPI-linked rent increases subject to cap and collar, and, in
accordance with the Group's highly disciplined investment strategy,
provide excellent quality accommodation available to residents,
with well-proportioned en suite bedrooms and large areas of
communal space, as well as additional on-site facilities.
The Cirencester care home, Stratton Court, opened in April 2018
and comprises 73 bedrooms, all of which have full, en suite wetroom
facilities. Kings Lodge in Camberley opened in July 2017 and
comprises 64 bedrooms, also with en suite bathrooms and wetroom
showers. Both locations have been analysed through the Group's
specialist research capability, which has shown them to have
economic and demographic fundamentals that are highly supportive
for the care homes in the long term.
Aura is majority owned by chief executive Linda Lloyd, who was
responsible for the development of these unique homes. As part of
the transaction, Seamus Halton and Eamonn McGurk will join the
board of the operator, bringing their long experience operating in
the premium care home market and development sector to a company
with strong growth potential. Mike Adams, an existing director of
Aura, will also continue in his role.
The yield is representative of assets of a similar standard and
location within the Group's portfolio.
John Flannelly, Head of Investment at Target Fund Managers,
commented:
"We are delighted to welcome our twenty-first tenant. This
transaction marks a further deployment of the equity we raised in
February of this year, following the acquisition of assets in
Shrewsbury and Preston in March. The homes are of the very highest
specification and provide an excellent standard of living for the
residents, whilst providing a quality of care that is in keeping
with our own ethos.
"We continue to have a strong pipeline of potential investments
that we are currently working on and we hope to make additional
announcements in the near future as we continue to prudently grow
the portfolio and improve the quality, diversity and visibility of
our rental income."
All enquiries:
Kenneth MacKenzie / John Flannelly
Target Fund Managers 01786 845 912
Martin Cassels
Maitland Administration Services
(Scotland) Limited 0131 550 3760
Dido Laurimore / Claire Turvey / 020 3727 1000
Richard Gotla targethealthcare@fticonsulting.com
FTI Consulting
Notes to editors:
UK listed Target Healthcare REIT Limited (THRL) is an externally
managed Real Estate Investment Trust which aims to provide
shareholders with an attractive level of income, together with the
potential for capital and income growth, through the assembly and
management of a portfolio of modern, purpose built care homes.
The Group's current portfolio comprises 53 assets with a total
value of circa GBP341.4 million (31 March 2018), which are let to
20 tenants.
The Group only invests in modern, purpose built homes that
provide the best environments for residents and their care
providers and ensure they are let at a sustainable rent. The Group
aims to build collaborative, supportive relationships with each of
its tenants as it believes working in this way helps raise
standards of care and helps its tenants build sustainable
businesses. In turn, that helps the Group deliver stable returns to
its investors.
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END
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