Target Healthcare REIT announces £17.1m acquisitions

UK listed specialist investor in modern, purpose-built care homes Target Healthcare REIT has announced two acquisitions worth a combined value of £17.1m.

The REIT has completed the acquisition of a development site in Wetherby, West Yorkshire and exchanged contracts to acquire a pre-let care home in Newton, Powys, mid-Wales.

John Flannelly, Head of Investment at Target Fund Managers, said: “We are very pleased to announce completion of these two transactions, enabling us to add additional high-quality, purpose-built homes to the portfolio.”

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The Wetherby site for a 66-bed, residential home has recently received planning permission and will be developed by specialist elderly care home contractor LNT Construction Limited by early 2019.

Upon completion, the home will be let to LNT Construction’s sister company, Ideal Carehomes.

The Powys acquisition of a 73-bed home, meanwhile, is expected to be completed in the second half of 2019. Upon completion, the home will be let to Caresolve.

John added: “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.”