10th May 2016 15:14
LONDON (Alliance News) - Target Healthcare REIT Ltd on Tuesday said it has raised a total of GBP84.0 million through its share placing and subscription, upsized from its initial plans.
Later the company said it had bought a purpose build care home in Warrenpoint, Northern Ireland, for around GBP5.8 million including acquisition costs. This property has an existing lease for a 30 year term with around 25 years remaining. The rent payable under the lease is subject to annual uplifts of up to 3%, and the purchase price represents an initial yield in excess of 7%, it said.
The care home owner said it issued a total of 80.0 million shares at 105.00 pence per share, higher than the 71.4 million it had planned to issue after investor demand exceeded that initial target.
Target shares were down 1.4% to 105.50p on Tuesday afternoon.
The company will use the funds to back acquisitions already agreed and to seek further deals in the care home sector.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Target Healthc.