Target Healthcare REIT, the specialist UK care home investor, has acquired a portfolio of three modern, purpose-built care homes for £13.9 million, including acquisition costs.
Located in Wigan, Stockport and Coventry, all three properties are built to high specifications, benefitting from generously proportioned bedrooms and public spaces. The deal comprises 169 bedrooms across the three properties, all with en-suite facilities, including wet room showers.
The care homes are leased to operator Ideal Carehomes Group for a period of 35 years and the transactions represent an initial yield of 7 per cent. The rent payable under these leases is subject to an annual uplift in line with the retail prices index, subject to cap and collar.
These acquisitions see the Target Healthcare REIT’s portfolio increase to 16 care homes with approximately £72.7 million invested in the sector.
Kenneth MacKenzie, managing partner of Target Advisers LLP, said: "We are very pleased to have added these three very high quality care homes to our portfolio following so closely behind the £8.9 million transaction announced last month. This will provide sustainable, long-term returns for our clients. We are always looking for quality, purpose-built care homes which match our very high standards and continue to see a significant pipeline of further acquisitions in the near term.”