Target Healthcare REIT has completed the acquisition of 18 operational care homes as part of a £173m spending spree in the fourth quarter of 2021.
The portfolio is spread across eight tenants, three of which are new to Target, including Barchester Healthcare and two regional operators.
Representing in excess of 1,200 beds, the acquired 18-home portfolio has an average age of approximately 11 years.
All of the properties are purpose-built care homes with modern facilities including 100 per cent ensuite provision, 96 per cent of which benefits from full wet rooms.
In a related development, Target revealed construction has started of a new care home in Weymouth.
The development is being undertaken on a fixed price contract with the developer LNT Group and Target will earn interest on capital deployed through the construction phase.
Upon reaching practical completion scheduled for June 2022, the care home will be leased to regional operator, Chanctonbury Healthcare, on a 35-year, full repairing and insuring lease.
Following the acquisitions, Target’s portfolio to 98 assets and to 32 tenants once the Weymouth scheme becomes operational.
“The acquisition of the 18-care home portfolio increases the size of the group’s existing portfolio by approximately 20 per cent and demonstrates the group’s ability to undertake transactions of scale,” said John Flannelly, head of investment at Target Fund Managers.
“On completion next year, the Weymouth asset will be a best-in-class care home in a location which demonstrates favourable demographics, whilst we are also pleased to be further diversifying our tenant base by partnering with a new, experienced operator in Chanctonbury Healthcare,” he added.
