Member Article

Southern healthcare firm invests £5.1 million in York care facility

Target Healthcare REIT Ltd, a Stirling-based investor in UK care homes has acquired a care home in York for approximately £5.1 million including acquisition costs.

The home is due to be completed and opened in summer 2014.

The care homes will both be leased to operator Ideal Carehomes Group for a period of 35 years and the transactions both represent an initial yield in excess of 7%.

As part of the agreed transaction, the Company is to provide a short-term loan facility to Ideal Carehomes Group in order to fund the completion of the York property.

Ideal Carehomes Group employs 1,800 staff across 36 residential care homes.

The Company has now invested approximately £59.3 million of the £95.7 million raised from institutional investors, wealth managers and private investors.

Kenneth MacKenzie, managing partner of Target Advisers LLP, commented on the acquisition: “We are delighted to have completed these transactions, continuing our support for an existing tenant who demonstrates a strong care ethos.

“With approximately £49.7 million of deals in advanced, non-binding legal negotiations (including acquisition costs) we expect to announce further acquisitions in the near-term.”

This was posted in Bdaily's Members' News section by Clare Burnett .