Target Healthc. Regulatory News (THRL)

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TARGET HEALTHCARE REIT LIMITED

("Target" or the "Company")

RESULTS OF INITIAL PLACING AND OFFER

Further to the announcement on 18 April 2016, the Company is pleased to announce that it has raised gross proceeds of £84 million by way of an initial placing (the "Initial Placing") and offer for subscription (the "Offer") of 80,000,000 new ordinary shares ("New Shares") pursuant to the terms and conditions of the Initial Placing and Offer set out in the prospectus published by the Company on 18 April 2016.

Investor demand for New Shares exceeded the available supply as initially targeted by the Company. After careful consideration of the existing acquisition opportunities, the Board has determined to increase the size of the Initial Placing and Offer to 80,000,000 New Shares at 105 pence per share. Notwithstanding the increased number of New Shares made available pursuant to the Initial Placing and Offer, investor demand still exceeded this supply and as such a scaling back exercise has been undertaken.

Applications will be made to the FCA for admission of the New Shares to the premium segment of the Official List and to trading on the London Stock Exchange's main market for listed securities (''Admission''). It is expected that Admission will become effective, and that unconditional dealings in the New Shares will commence, at 8.00 a.m. (London time) on12 May 2016.

The New Shares, when issued, will be credited as fully paid and will rank pari passu in all respects with the existing Ordinary Shares.

Following Admission, the Company's issued share capital will consist of 252,180,851 Ordinary Shares. The Company does not hold any Ordinary Shares in treasury. Accordingly, the total number of voting rights in the Company will be 252,180,851. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.

 Commenting, Malcolm Naish, Non-Executive Chairman of Target said:

"We are delighted and encouraged by the support shown from existing and new investors in this fundraise, particularly given the background of challenging real estate equity markets. The fundraising will allow the Company to take advantage of a strong and attractive pipeline of opportunities and will ensure it is well positioned to provide significant value to shareholders."

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Important Information

The content of this announcement has been prepared by and is the sole responsibility of Target Healthcare REIT Limited.

The information contained in this announcement is given at the date of its publication (unless otherwise marked) and is subject to updating, revision and amendment from time to time.

Stifel Nicolaus Europe Limited, which is authorised and regulated by the Financial Conduct Authority, is acting only for the Company in connection with the matters described in this announcement and is not acting for or advising any other person, or treating any other person as its client, in relation thereto and will not be responsible for providing the regulatory protection afforded to clients of Stifel Nicolaus Europe Limited or advice to any other person in relation to the matters contained herein.

None of the Company, Target Advisers LLP or Stifel Nicolaus Europe Limited, or any of their respective affiliates, accepts any responsibility or liability whatsoever for or makes any representation or warranty, express or implied, as to this announcement, including the truth, accuracy or completeness of the information in this announcement (or whether any information has been omitted from the announcement) or any other information relating to the Company or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of the announcement or its contents or otherwise arising in connection therewith. The Company, Target Advisers LLP and Stifel Nicolaus Europe Limited, and their respective affiliates, accordingly disclaim all and any liability whether arising in tort, contract or otherwise which they might otherwise have in respect of this announcement or its contents or otherwise arising in connection therewith.