Target Healthcare REIT announces £13.8m care home acquisition

Specialist investor in modern, purpose-built care homes, Target Healthcare REIT, has completed the £13.8m acquisition of a care home in East Sussex.

The deal for the 62-bed home with full en-suite wetroom facilities, which will be let to a subsidiary of Caring Homes Group, follows the completion of a share placing by the Group, which raised £50m for acquisitions.

John Flannelly, Head of Investment at Target Fund Managers, said: “The completion of this acquisition adds another high quality asset to the portfolio, further strengthening our relationship with Caring Homes and increasing our presence in the demographically strong South East market.

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“We have now completed the £51m of ‘imminent’ acquisitions we were targeting by the end of November. We continue to progress due diligence on the near term pipeline of approximately £28m as well as advance multiple other investment opportunities that we are currently seeing in the market.”

The home was opened in September 2017 and was a design finalist in 2018.

As is customary for its new and nearly new care homes, Target Healthcare has agreed a short rent free period for the property, which will assist the tenant’s cashflows during the early trading period.

Paul Jeffery, CEO, Caring Homes Group, said:“I am delighted that Parris Lawn in East Sussex is joining our family of high-quality care homes across the UK. We are very much looking forward to enhancing the support Parris Lawn delivers to all its residents and hope that they will be impressed with our approach to and focus on person centred care, clinical excellence and family values. We pride ourselves on providing exceptional care as well as recruiting and retaining the most talented staff.“