4th Sep 2014 09:05
LONDON (Alliance News) - Target Healthcare REIT Ltd said Thursday that it has exchanged contracts to acquire a new purpose-built care home in Hastings, East Sussex for approximately GBP8.0 million.
The specialist investor in UK care homes said it will acquire the care home for GBP8.0 million - which includes acquisition costs - in November 2014, when it is due to be completed, registered and opened.
The four storey property has 80 bedrooms, each with full en-suite bathrooms with wetroom showers. It is constructed to a high standard and includes many facilities such as a bar/bistro, cinema room and hairdressing salon, said Target Healthcare REIT.
The transaction will represent a sale and leaseback of the property from Hastings Court Ltd, said the company, with a 35 year lease. The transaction represents an initial yield of in excess of 7%. The rents payable under the leases are subject to annual uplifts in line with the retail prices index, subject to a cap and collar.
The acquisition means that the company has now invested more than GBP116 million to date through a combination of equity raised and the use of term loan and revolving credit facilities provided by the Royal Bank of Scotland PLC.
"This transaction will allow us to quickly invest equity raised into a good asset which will provide a high standard of care, in an attractive and welcoming environment. It will also broaden the Company's geographical spread to the south coast of England, and widen its tenant base. We have a number of other deals with both regional and national operators in advanced non-binding legal negotiations, and we expect to make further announcements soon," said Kenneth MacKenzie, managing partner of Target Advisers LLP.
Shares in Target Healthcare REIT were Thursday trading higher, up 0.79% at 105.58 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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