Care home acquired in multi-million-pound deal

Target Healthcare, the listed investor in purpose-built care homes, has completed the acquisition of a development site in Wetherby, West Yorkshire.

The group also exchanged contracts to acquire a pre-let care home in Newtown, the largest town in Powys in mid-Wales. The total value of the two transactions is £17.1m.

The development site in Wetherby has already received planning consent to create a 66-bed, residential care home. The property will be redeveloped with the inclusion of full en-suite wetroom facilities, large public spaces and a complete fit-out.

Due to be completed in early 2019, the project will undertaken by Leeds-based elderly care home contractor, LNT Construction Limited.

Upon the home reaching practical completion, the property will be let on a full repairing and insuring basis to LNT Construction’s sister company, Ideal Carehomes Limited. Ideal represents the group’s largest tenant by income and this property will mark the eleventh collaboration between the two parties.

Target Healthcare has also exchanged contracts to acquire a pre-let, purpose-built care home in Newtown, Powys. The acquisition is expected to complete in the second half of 2019 once the development has been completed and the home has been fitted-out to the group’s specifications.

The home will offer 73 bedrooms over three floors all with en-suite wetrooms. All floors will have lounge/dining areas and quiet rooms.

John Flannelly, head of investment at Target Fund Managers, said: “We are very pleased to announce completion of these two transactions, enabling us to add additional high-quality, purpose-built homes to the portfolio.

“The Ideal transaction sees the group further extend its relationship with this long-standing tenant, whilst the Caresolve transaction welcomes an additional operator into the portfolio.

“This transaction will mark our first investment in Wales and is in an area where there are currently no modern, purpose-built care homes with en-suite wetroom provision, once again demonstrating the Group’s ongoing commitment to improving the standard of elderly care homes in both the self-funded and local authority markets.

“We continue to progress other opportunities within our strong pipeline of potential acquisitions and expect to make more announcements in the near future.”