Target Healthcare REIT Limited and its subsidiaries has announced that it has completed the acquisition of a premium, purpose-built care home in the south east of England for c.£14m (including transaction costs). This transaction is in accordance with the Group’s investment policy.
The home was opened in 2011 and provides accommodation in luxurious surroundings in several acres of grounds in beautiful countryside. All the bedrooms have full ensuite facilities including wetroom showers with the home representing one of the highest quality care home environments in the UK.
The home will continue to be operated by the incumbent operator, under a 30 year lease, and they will become the 11th operator in the Group’s portfolio. The rent payable under the lease comprises a base rent subject to RPI-linked uplifts and incorporating a cap and collar, as well as a share in the profits of the care home. The rental income to the Group will therefore be variable but is forecast to represent a net initial yield approaching 7% based upon current run rate trading.
THRL : Target Healthcare adds another home