Care home investor acquires 39 UK assets in £81.3m deal

A specialist investor in purpose-built care homes has agreed to acquire eight facilities and 31 apartments across the UK.

Care home real estate investment trust (REIT) Target Healthcare has signed to acquire a range of care homes and retirement residences across Yorkshire and the South West of England.

The deals totalling £81.3m will see the group acquire seven care homes in Yorkshire, a facility in Dorset as well as 31 retirement apartments in Gloucestershire.

The acquisitions follow the firm’s recent £80m equity placing in September, with the company planning to continue to explore further opportunities.

John Flannelly, head of investment at Target Fund Managers, commented: “Having completed the successful September fundraising, it is very pleasing to have deployed the proceeds so soon after, in a group of assets that meet our strict investment criteria and at yields that are consistent with previous similar acquisitions.

“At the same time, we are further strengthening the Group’s relationship with existing tenants whilst delivering continued portfolio diversification, a key focus for the Group.

“There is continued strong investor appetite for the stable and sustainable long duration rental income available from care home real estate, and we continue to develop our pipeline of further opportunities, leveraging our deep sector experience and proprietary in-house research capabilities.”

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