Target Healthcare REIT, the UK-listed specialist investor in purpose-built care homes, has announced it is looking to raise up to £40 mln (€45 mln) by way of a placing, which will be deployed into an advanced investment pipeline of £79 mln of acquisitions.
According to the firm, its planned investments include £51 mln of imminent acquisitions which it expects to commit to by the end of November 2018, and £28 mln of near term acquisitions for year end. Target said it was in advanced negotiations for the latter slate of deals.
'We continue to see attractive opportunities in the market and have identified a strong short term pipeline of assets that meet our strict investment criteria and which are either imminent or in advanced negotiations for acquisition,' said Malcolm Naish, chairman of the company.
'These investments will allow us to continue to drive the positive momentum behind the growth of the portfolio, while increasing our exposure to the demographically strong South East market and further diversifying the occupier base with the introduction of new tenants,' Naish added.
'Additionally, by bringing new shareholders onto the register and increasing the market capitalisation of the company, the issue of equity will support improved liquidity and reduce the Company’s ongoing costs per share.'
According to Target, the offer price represents a discount of 4% to the closing share price of 113.5 pence per existing ordinary share as of 23 October, and a premium of 2.7%. to the company's last reported EPRA NAV per ordinary share as at 30 September of 106.1 pence.
