14th Jul 2014 08:51
LONDON (Alliance News) - Target Healthcare REIT Ltd Monday said it has acquired a portfolio of elderly care homes and specialist care facilities for GBP20.4 million from Zest Investment Group.
The specialist UK care homes investor said it has acquired three purpose-built care homes and four specialist care bungalows.
It said the care homes, which are located in Norfolk and Northern Ireland, offer a combination of residential, nursing and dementia care. It said the properties offer a range of facilities, and can accommodate up to 255 residents.
Target Healthcare REIT said the care homes will continue to be leased to the existing operator, Priory Group, for a period of up to 28 years. It said the transaction represents an initial yield in excess of 7% and the rents payable under the leases are subject to fixed annual rental uplifts.
"We continue to grow the company's investment pipeline and have approximately GBP30 million of deals in advanced, non-binding legal negotiations," said Kenneth MacKenzie, Managing Partner of Target Advisers LLP in a statement.
The company has invested more than GBP110 million in acquisitions, funded via a combination of equity and bank debt.
Shares in the closed-ended property investment company were up 1.6% at 106.66 pence Monday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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