Target Healthcare REIT has completed the acquisition of two purpose built care homes in the village of Three Legged Cross near Wimborne, Dorset for an undisclosed price.
The two homes are adjacent to each other and comprise a total of 70 bedrooms. Acorn Lodge was built in 2012 and has a total of 26 bedrooms with full ensuite bathrooms with wetroom showers, as well as good community space. Oakdene was built in the 1990s and subsequently extended over a number of years to a total of 44 bedrooms. The extensions include an attractive conservatory lounge and further ensuite facilities.
On acquisition the combined homes were let to Dorset Healthcare Limited, which is part of the Care Concern Group. Care Concern operate 37 homes across the UK, with an emphasis on quality of care and a high service offering. The lease is for 35 years with RPI-linked increases subject to a cap and collar. The net initial yield on this transaction is consistent with the overall average yield on the existing portfolio.
Following acquisition the Group and Care Concern intend to undertake renovation works to Oakdene, with a view to enlarging some bedrooms, providing additional lounge space and generally bringing the home into line with the other assets in the Group’s portfolio. This will be carried out over a period of time to minimise disruption to the residents of the home.
Kenneth MacKenzie, Managing Partner of Target Advisers LLP, commented on the acquisition: “We are delighted to announce completion of this transaction which adds another mature home in the south of England to our portfolio, and further supports the work of Care Concern. By sensitively renovating the older building we should further enhance the environment for the residents, and help the efficiency of running the home, and improve the overall quality of the combined property. The transaction brings our total funds invested since our May 2016 fundraise to in excess of GBP80 million. We continue to progress other investment opportunities.”
THRL : Target Healthcare buys two care homes in Dorset