Target Healthcare REIT on point for £33m acquisition duo
Target Healthcare REIT has acquired a luxury care home in Scotland and a development site in Buckinghamshire for a total investment of £33m.
The undisclosed care home in Scotland will be operated on a 35-year lease by Caring Homes, which operates two other homes in Target’s portfolio.
The facility is situated in a densely populated area and has large bedrooms with full ensuite wetroom facilities.
The development site in Olney, Buckinghamshire meanwhile will host a care home to be leased to Kingsley Healthcare on a 35-year deal.
Having received planning consent in March, construction work will kick off by the end of the year with practical completion due by June 2023.
The development will be undertaken on a fixed-price contract with the developer, a separate Kingsley Healthcare entity.
In line with previous forward funding agreements, Target will earn interest on capital deployed through the construction phase.
“The Scottish care home, which was part of the pipeline of assets included in our most recent equity fundraise, adds a market-leading care home to the Group’s portfolio – one which provides impressive facilities for its residents and allows the delivery of great care in outstanding surroundings – and we are delighted to be further developing our relationship with Caring Homes,” said Target Fund Managers head of investment John Flannelly.
“The Buckinghamshire asset will be a best in class care home and we are excited to be collaborating with Kingsley on this development which is expected to be the first in a series of new projects with this highly regarded operator,” he added.