Target Healthcare REIT Limited Acquisitions in West Yorkshire and Wales (0506A)
07 September 2018 - 4:00PM
UK Regulatory
TIDMTHRL
RNS Number : 0506A
Target Healthcare REIT Limited
07 September 2018
Target Healthcare REIT Limited and its subsidiaries
("Target Healthcare" or "the Group")
Acquisition of a development site in West Yorkshire and exchange
of contracts
to acquire a care home in Wales
Target Healthcare (LSE: THRL), the UK's listed specialist
investor in modern, purpose-built care homes, announces that it has
completed the acquisition of a development site in Wetherby, West
Yorkshire and exchanged contracts to acquire a pre-let care home in
Newtown, the largest town in Powys in mid-Wales. The total value of
the two transactions is GBP17.1 million (including costs):
-- The Group has acquired a development site and entered into a
forward funding agreement in Wetherby, West Yorkshire. Having
received planning consent, the development will be funded under a
capped development contract to create a 66-bed, residential care
home. The property will be completed to a high standard, with the
inclusion of full en-suite wetroom facilities, large public spaces
and a high-quality fit-out. The investment is underpinned by the
strong wealth characteristics and positive underlying demographics
of the local area.
The development, which is due to complete in early 2019, will be
undertaken by specialist elderly care home contractor, LNT
Construction Limited ("LNT Construction"). Upon the home reaching
practical completion, the property will be let on a full repairing
and insuring basis to LNT Construction's sister company, Ideal
Carehomes Limited ("Ideal"). Ideal represents the Group's largest
tenant by income and this property will represent the eleventh
collaboration between the two parties.
The 35-year occupational lease will include annual, upwards-only
RPI-linked increases, subject to a cap and collar. The yield is
slightly lower than the Group's overall average for the portfolio,
reflecting in part the tenant's presence in the sector and
underlying financial covenant.
-- The Group has also exchanged contracts to acquire a pre-let,
purpose-built care home in Newtown, Powys. The acquisition is
expected to complete in the second half of 2019 once the
development has been completed and the home has been fitted-out to
the Group's specifications.
The home, which marks the Group's first transaction in Wales,
will be constructed to a very high standard and will offer 73
bedrooms over three floors all with en-suite wetrooms. All floors
will have large lounge / dining areas and quiet rooms, and
residents will have easy access to secure, outdoor space owing to
the provision of a large, landscaped garden at ground floor level
and resident balconies on both the first and second floors.
On completion, the property will be leased to a new tenant,
Caresolve Operations Limited ("Caresolve"), for 35 years on a full
repairing and insuring lease. The Caresolve management team has
extensive experience of the care sector and a proven track record
of providing support, advisory and management services to a broad
range of operators within the sector. The rent payable is subject
to annual, upwards-only, RPI-linked uplifts, incorporating a cap
and collar. The net initial yield on the transaction is consistent
with the Group's current portfolio average.
John Flannelly, Head of Investment at Target Fund Managers,
commented on the acquisition:
"We are very pleased to announce completion of these two
transactions, enabling us to add additional high-quality,
purpose-built homes to the portfolio. The Ideal transaction sees
the Group further extend its relationship with this long-standing
tenant, whilst the Caresolve transaction welcomes an additional
operator into the portfolio. This transaction will mark our first
investment in Wales and is in an area where there are currently no
modern, purpose-built care homes with en-suite wetroom provision,
once again demonstrating the Group's ongoing commitment to
improving the standard of elderly care homes in both the
self-funded and local authority markets.
"We continue to progress other opportunities within our strong
pipeline of potential acquisitions 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
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 55 assets with a total
portfolio value of GBP385.5m (30 June 2018) plus two further assets
acquired in July 2018. In total these homes are let to 21
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACQUGURUBUPRGQQ
(END) Dow Jones Newswires
September 07, 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