20th Jun 2016 07:06
LONDON (Alliance News) - Target Healthcare REIT Ltd on Monday said it has exchanged contracts to buy a purpose-built care home in Essex for GBP9.2 million, with the deal to complete once work has been undertaken to complete the home to the group's specification.
The investor in UK care homes said, once completed, the property in Kirby Cross near Frinton-on-Sea, Essex, will have 82 bedrooms over two floors, with two atriums, several lounges, a cinema room and a bar. A number of rooms will feature separate lounge and bedroom areas, as well as kitchen spaces, Target Healthcare said, with the transaction is expected to complete in January 2017, once work has been finished at the site.
The property will then bet leased to existing tenant Care Concern Group, Target Healthcare said, and will be subject to a 35-year lease with RPI-linked cap and collar.
Target Healthcare said the net initial yield on the transaction is "consistent with the overall average of the group's portfolio".
"We are very pleased to announce this exchange of contracts. When completed this home will be a high quality offering to the local market with a tenant that provides care which helps enrich the lives of their residents. This transaction is the fourth since our recent successful fundraise announced in early May," said Kenneth MacKenzie, managing partner of Target Advisers LLP, Target Healthcare's fund manager.
Shares in Target Healthcare were untraded on Monday, having last traded at 109.00 pence.
By Hannah Boland; [email protected]; @Hannaheboland
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