(Alliance News) - Target Healthcare REIT PLC said Friday it has completed the acquisition of a care home in Scotland and also has acquired a site in Buckinghamshire and contracted to forward fund the subsequent development of a pre-let care home.
The total investment, Target noted, is GBP33 million.
"The acquisition yields are representative of assets of a similar standard and location within the group's portfolio and both homes benefit from long-term occupational leases with RPI-linked cap and collars," the real estate investment trust added.
Target said the care home in Scotland has strong occupancy, largely comprised of private fee paying residents.
It will be operated on a 35 year lease by Caring Homes group. Caring Homes is an existing tenant that operates two other homes in Target's portfolio.
The development site, in Olney, Buckinghamshire, has an agreement in place to deliver a new pre-let care home. It will be leased to Kingsley Healthcare, an existing Target tenant, on a 35 year, full repairing and insuring lease.
Target Fund Managers Head of Investment John Flannelly said: "These two transactions are fully aligned with the group's strict investment criteria as we continue our highly disciplined approach to the deployment of capital. All the equity raised in March 2021 is allocated to board approved acquisitions that are in advanced stages of due diligence."
Target Healthcare REIT shares were down 0.2% in London on Friday at 115.63 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Target Healthc. (THRL)