Target Healthcare REIT has announced that it has exchanged contracts to acquire Tapton Court, a 69 bed care home in Sheffield, South Yorkshire. Tapton Court (pictured) was built in the 1990s and closed in 2014. It will now be substantially redesigned and refurbished during which the bedrooms will be enlarged and reduced in number to 46 and large ensuite bathrooms with wetroom showers added. The company says that additional public space will be created resulting in several lounges/dining space and a new conservatory. Completion of the acquisition is expected in January 2016, with the refurbishment works completed by September 2016. The company says that the overall price for the acquisition and subsequent renovation of the home is £3.9m including costs.
Upon completion, the care home will be leased to Care Concern Group for a period of 35 years and the transaction represents a net initial yield in excess of 7%. The rent payable under the lease is subject to an annual uplift in line with the retail prices index subject to a cap and collar. This will be the third home which Care Concern operates in the Group’s portfolio, along with Mossvale Care Home in Glasgow and The Ashton in Hinckley, Leicestershire.
The company says that this transaction will see the overall funds invested by the Group in care home assets rise to in excess of £165m.
Target Healthcare REIT acquiring Tapton Court, Sheffield : THRL