Target Healthcare REIT Limited has exchanged contracts to acquire a purpose-built care home located in the town of Sutton-in-Ashfield, Nottinghamshire. The home will be acquired for approximately GBP5.6 million including acquisition costs. The transaction is expected to conclude by April 2017 once the build has been completed and the home has been fitted out to specifications.
The home is being constructed to the highest standards and will offer 66 bedrooms over three floors, all with en-suite wetrooms. Air conditioning will be provided to all communal areas and all floors will have large lounge / dining areas and quiet rooms. The resident balconies on both the first and second floors together with the landscaped gardens at ground floor level will enable all residents to easily access secure outdoor space.
Upon completion, the property will be leased to Oakdale Care Group, a newly established care home operator, and will be subject to a 35-year lease with RPI-linked cap and collar. Oakdale will become the Target’s 16th tenant, thereby further diversifying the tenant base. The net initial yield on the transaction is consistent with the overall average of the portfolio.
Kenneth MacKenzie, Managing Partner of Target Advisers LLP, commented on the acquisition: “We are very pleased to announce this exchange of contracts which once again demonstrates our ongoing commitment to improving the elderly care home offering by investing in new, purpose-built homes. Once completed this high-quality home in a location of strong demand will further complement our existing portfolio. This transaction also demonstrates our willingness to support proven management teams who evidence a strong care ethos. The transaction brings our total funds committed since our May 2016 fundraise to c. GBP75 million. We continue to progress other opportunities.”
THRL : Target buys Nottinghamshire care home