17th Apr 2014 09:44
LONDON (Alliance News) - Target Healthcare REIT Ltd Thursday said it has acquired a purpose-built care home in Flixton, Greater Manchester for about GBP3.8 million, and exchanged contracts to acquire another care home in York, which is due to be opened this summer, for about GBP5.1 million.
The UK care home investor said both homes will both be leased to operator Ideal Carehomes Group for 35 years, and the transactions both represent an initial yield in excess of 7%.
Target Healthcare will provide a short-term loan facility to Ideal Carehomes to fund the completion of the York property, it said. The facility attracts a paid interest coupon of 7% and will be repayable from the proceeds on the completion of the York property.
Target Healthcare listed in March 2013, and the two latest homes represent its twelfth and thirteenth acquisitions since then. It has now invested about GBP59.3 million of the GBP95.7 million it raised.
It said it expects to announce more acquisitions in the near future.
Target Healthcare REIT shares last traded at 102 pence.
By Steve McGrath; [email protected]; @SteveMcGrath1
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