TARGET HEALTHCARE has completed the £6.2m purchase of a Hull care home.
Alexandra Court Care Centre will be owned by Arrow Healthcare, whose approval by the Care Quality Commission was the final hurdle for the deal, which was first announced in June.
The 84-bedroom property east of the city centre will be run by elderly care home operator, Healthcare Management Solutions, under a management services agreement.
Target Healthcare is a real estate investment trust (REIT) listed on the stock market which specialises in investing in UK care homes.
The rent payable under the lease comprises a base rent subject to annual RPI-linked uplifts and incorporating a cap and collar, as well as a share in the profits of the care home. Target Healthcare is forecasting this to represent a net initial yield of more than 7%.
Speaking at the time of the original announcement, Target Advisers’ managing partner Kenneth MacKenzie said: “We are delighted to announce the acquisition of this home, adding as it does another quality property to the Group’s growing portfolio as well as further expanding the tenant base.”
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