12th Apr 2016 07:20
LONDON (Alliance News) - Target Healthcare REIT Ltd on Tuesday said it plans to initiate a new share placing programme to provide it with firepower for acquisition opportunities, launching an initial placing and subscription offer to raise around GBP75 million.
The property investor, which had a portfolio of 33 care homes as at the end of March, said it has a near-term pipeline of GBP68.7 million, including GBP53.8 million in investment opportunities.
Target Healthcare estimates its currently available cash reserves at around GBP17.7 million, and said it has the ability to drawdown an additional GBP18.5 million from its existing debt facility.
The share placing programme is intended to provide Target Healthcare with the ability to react quickly in relation to acquisition opportunities, it said. The initial placing targeting GBP75 million is expected to close in early May. Further details including the initial placing and offer price will be provided when a prospectus and circular are published.
Target Healthcare said that, on a like-for-like basis, the value of its portfolio increased 0.9% in the quarter to end-March. Its net asset value total return for the quarter was 1.5%.
Shares in Target Healthcare were down 2.2% at 108.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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