18th Sep 2013 09:18
LONDON (Alliance News) - Target Healthcare REIT Limited said Wednesday it had acquired the freehold to a new care home from LNT Carehomes Limited for around GBP4 million, its eighth acquisition since March.
The company, a specialist investor in care homes, also reiterated its plans to issue more shares in the near future.
Target Healthcare's latest acquisition is of a care home in Thirsk, North Yorkshire, that was completed this year. The home is under a 35-year lease with operator Ideal Carehomes, giving an initial yield in excess of 7%, Target Healthcare said in a statement. Rent payable under the lease is subject to an annual uplift in line with the retail prices index subject to a cap and a floor.
The deal is Target Healthcare's eighth care-home acquisition since it listed on the London Stock Exchange's main market on March 7. In a statement, the company said that it had now invested approximately GBP36.0 million of the GBP50.3 million raised from institutional investors, wealth managers and private investors, and had entered into advanced legal negotiations to acquire further properties.
If completed, the acquisitions would result in the company having invested its remaining available cash reserves, it said, in line with anticipated investment schedule. As previously announced, it was therefore in discussion with its advisors about a new placing of shares, the company said, and expected to publish a prospectus shortly.
The GBP4 million purchase price includes acquisition costs.
Shares in Target Healthcare were trading down 0.6% Wednesday morning, at 104.90 pence.
By Philip Nye; [email protected]
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