Target Healthcare REIT is acquiring a new, purpose-built, £6m care home in Hinckley, Leicestershire. The 72 bedroom home will be leased to Care Concern Group for 35 years on a lease that brings Target Healthcare REIT an initial 7% yield and increases in rent each year in line with RPI (subject to a cap and collar).
With this deal, Target Healthcare REIT has invested all of its IPO proceeds and has begun to dip into its credit facility. Target is now considering raising additional equity – it says it has £44m of potential acquisitions lined up.