Listed firm’s £18.6m deal to buy two care homes
Target Healthcare, a listed specialist investor in purpose-built care homes, has completed the acquisition of two properties, in Ripon, North Yorkshire and Stourport, West Midlands, for approximately £18.6m.
The Moors Care Centre, in Ripon, was constructed in 2015 and features 70 bedrooms, each with full en-suite wetroom facilities.
The Wharf Care Centre, Stourport, opened in 2018 and comprises 67 bedrooms, also with full en-suite wetroom facilities. It is in a predominantly residential area, close to the centre of Stourport.
Both homes are let on 35-year leases with RPI-linked cap and collar to a subsidiary of Maria Mallaband Care Group, the national care home operator. A short rent free period has been agreed in relation to the Wharf Care Centre which will assist the tenant’s cashflows during the early trading period.
John Flannelly, Head of Investment at Target Fund Managers, said: “This transaction adds two further high quality assets, in strong locations, to the portfolio and also allows us to welcome Maria Mallaband, a highly regarded national operator, to our tenant group.
“The Group now has a highly diversified portfolio consisting of 63 assets (including developments), leased to 26 different operators.
“These acquisitions take us closer towards full deployment of our available capital and we continue to progress our identified pipeline of investment opportunities, with further announcements expected in the near future.”