Target Healthcare acquires three new care homes

15th May 2014 09:29

UK care home investor Target Healthcare has acquired three residential care homes for 13.9m pounds.The three new properties located in Wigan, Stockport and Coventry are currently being leased to Ideal Care homes Group for a 35-year period and the price reflects an initial yield of 7%. The rent which is payable under the lease is expected to include annual uplifts which will be in line with the retail prices index and will be subject to a cap and collar.Following the new acquisitions, the group's portfolio has now increased to 16 care homes and it has now invested £72.7m of the £95.7m raised from institutional investors, wealth managers and private investors.Target Advisers Managing Partner Kenneth Mackenzie said: "This acquisition follows closely on from the transaction announced last month and adds a further three high quality properties to the company's portfolio."We continue to grow the company's investment pipeline with both single and multi-asset acquisitions across regional and national operators. With approximately £35.5m of deals in advanced, non-binding legal negotiations we expect to announce further acquisitions in the near-term."As of 10:20, the share price was unchanged at 101p.WS