Target Healthcare REIT is investing £17.1m (€19.1m) in the UK to forward fund a development site and to buy a pre-let care home.

The listed specialist investor in modern, purpose-built care homes said it has completed the acquisition of a development site in Wetherby, West Yorkshire and exchanged contracts to acquire the pre-let care home in Newtown, in mid-Wales.

The Wetherby development, which is due to complete in early 2019, will create a 66-bed, residential care home. The property will be let to let to Ideal Carehomes on a 35-year occupational lease.

The acquisition in Newtown, which marks the group’s first transaction in Wales, is expected to complete in the second half of 2019.

The care home will offer 73 bedrooms over three floors. The property will be leased to a new tenant, Caresolve Operations, for 35 years.

John Flannelly, the head of investment at Target Fund Managers, said the Ideal transaction sees the group further extend its relationship with this long-standing tenant, whilst the Caresolve transaction welcomes an additional operator into the portfolio.

“This transaction will mark our first investment in Wales and is in an area where there are currently no modern, purpose-built care homes with en-suite wetroom provision, once again demonstrating the group’s ongoing commitment to improving the standard of elderly care homes in both the self-funded and local authority markets.

“We continue to progress other opportunities within our strong pipeline of potential acquisitions and expect to make more announcements in the near future.”