Modification of Management Arrangements

TARGET HEALTHCARE REIT LIMITED

RNS ANNOUNCEMENT

19 MARCH 2013

MODIFICATION OF MANAGEMENT ARRANGEMENTS

The Board of Target Healthcare REIT Limited (the "Company") announces that the Company has appointed R&H Fund Services (UK) Limited ("R&H") as its investment manager with immediate effect. R&H, which is authorised and regulated by the Financial Services Authority, is currently acting as administrator of the Company and has appointed Target Advisers LLP ("Target") as its delegate to manage the investment property assets of the Company. The terms of R&H's appointment and the subsequent delegation of portfolio management to Target will not result in any additional costs to shareholders or affect the existing commercial arrangements.

Target Advisers LLP has been considering the most suitable management arrangements for the Company in the light of the implementation of the EU Alternative Investment Fund Managers Directive and intends to apply for FSA authorisation.

All enquiries:

R&H Fund Services Limited Tel: 0773 0131 019

Martin Cassels

Target Advisers LLP Tel: 01786 823 551

Kenneth MacKenzie