Target Healthcare REIT buys care home and development site
UK-listed Target Healthcare REIT has bought a care home in Doncaster and development site in Lancashire for £13.9m (€15.7m)
Target Healthcare said it acquired the freehold of Cantley Grange, a purpose-built 40-bed care home in Doncaster, South Yorkshire.
Cantley Grange, which opened in 2007, is operated by Orchard Care Homes. The home is let on a 35-year full repairing and insuring lease, with 24 years left to run.
Target Healthcare said it has also acquired a development site and entered into a forward funding agreement in Burscough, Lancashire, just outside Ormskirk. The site has planning consent for an 80-bed care home.
Target Healthcare said the development will be funded under a capped development contract.
The development will be carried out in partnership with Athena Healthcare, an existing tenant of the group, Target Healthcare said.
On completion of the building, which is expected in the fourth quarter of 2019, the home will be let to Athena for 35 years.
John Flannelly, the head of investment at Target Fund Managers, said: “We are pleased to see completion of these transactions, adding further quality assets to the group’s portfolio and enabling us to extend our relationship with two proven operators who deliver well-run homes and high-quality care in line with our ethos.
“Combined with the Aura Care Living transaction announced in June and the acquisitions announced in March, the group has now deployed around 70% of the equity raised in February of this year. The remainder of available capital is expected to be committed in the near future.”