Target Healthcare adds to portfolio – Care home investor Target Healthcare has acquired two new properties for £18.6m.
It has bought assets in Ripon, Yorkshire and Stourport, West Midlands, with both meeting the group’s strict investment criteria of being modern, well equipped care homes with 100% en-suite wetrooms, underpinned by supportive fundamentals.
The Moors Care Centre, in Ripon, was constructed in 2015 and comprises 70 bedrooms. The home’s current trading performance is delivering a strong rent cover in excess of 2.0x.
The Wharf Care Centre, in Stourport, opened in 2018 and comprises 67 bedrooms. Target Healthcare expects the home to perform strongly once it reaches operational maturity.
Both homes are let on 35-year leases with RPI-linked cap and collar to a subsidiary of Maria Mallaband Care Group, the national care home operator. A short rent free period has been agreed in relation to the Wharf Care Centre which will assist the tenant’s cashflows during the early trading period.
Target Healthcare’s portfolio now consists of 63 assets (including developments), leased to 26 different operators.
THRL : Target Healthcare adds to portfolio
Click here to subscribe for free equity research on investment trusts, funds and listed companies.