Target Healthcare REIT completes £7.6m care home acquisition

Specialist investor in modern, purpose-built care homes, Target Healthcare REIT, has completed the £7.6m acquisition of Acorn House in Nottingham.

Constructed in 2013, Acorn House comprises 64 bedrooms, each with full en suite wetroom facilities, over three floors.

The service has been leased back to care operator Acacia Care, which runs three homes, another of which is owned by Target.

Target said the home fully met its strict investment criteria, which includes being recently purpose built with modern facilities and a high quality of care provision, as well as being backed by a strong trading history with consistently high occupancy, providing strong rent cover.

John Flannelly, Head of Investment at Target Fund Managers, (pictured) said: “This acquisition brings the number of assets in our portfolio to 63, including developments, and offers us the opportunity to support the growth of a tenant we regard as an operator of quality.  The home has positive CQC ratings and provides a warm and welcoming environment for its residents.

“In addition to this investment, we have recently seen three forward fund developments in our portfolio open to residents.  The care home market is undersupplied with the quality of asset which we provide, while demand is growing apace, underpinning our conviction in the portfolio we are assembling.”