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LONDON (Alliance News) - Target Healthcare REIT Ltd on Friday said it has purchased a care home in Halifax, West Yorkshire for around GBP7.2 million, in a move it said supports the growth of an existing tenant's business.
The investor in UK care homes said the care home, Summerfield House, is a purpose-built facility with 106 beds over three floors. The care home opened in 2011.
Upon acquisition by Target Healthcare, the home has been let to a subsidiary of the national care group Bondcare Group, which is an existing tenant of Target Healthcare's and which operates homes in Birmingham and Nottingham. These homes are part of Target Heatlhcare's portfolio.
The home is subject to a 35-year lease with a UK retail price index-linked cap and collar, Target Healthcare said. The net initial yield on the transaction is "consistent with the overall average of the group's portfolio," the company added.
"We are pleased to announce the acquisition of this home, which adds a further good quality asset to our portfolio and allows us to support the growth of an existing tenant's business. This acquisition was contemplated during our recent successful fundraise and we continue to progress other opportunities as we look to invest those proceeds in a timely fashion. We expect to make further announcements in due course," said Kenneth MacKenzie, managing partner of Target Advisers LLP, which acts as fund manager to Target Healthcare.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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