Target Healthcare acquires Tonbridge care home for £12m

Specialist care home investor Target Healthcare REIT announced on Tuesday that it has completed the acquisition of a purpose built care home in Tonbridge, Kent for approximately £12.2m including acquisition costs.

The London-listed firm had previously entered into a forward commitment to acquire this property.

It said the property is a purpose built home which was completed in early October 2016, comprising 101 bedrooms with full ensuite bathrooms including wetrooms over three floors.

Each floor has its own lounge, and the home also features quiet rooms, a hairdressing salon and a therapy room.

Target said there is generous outdoor space which includes an attractive landscaped garden as well as balconies for the upper floors.

The home is let to the Abbeyfield Kent Society, a charitable organisation which provides care and housing to over 350 people at 14 locations across Kent, East Sussex and the London Borough of Bromley.

It said the lease is for a 30 year term with RPI-linked uplifts subject to a cap and collar.

Abbeyfield Kent is Target's 15th tenant and further diversifies its tenant base.

The net initial yield on the transaction is slightly below the overall average of the group's portfolio, the board confirmed, which it said reflected the strong location of the asset.

“We are extremely pleased to announce completion of this transaction which both increases our exposure to the south east and adds another high quality tenant to the portfolio,” said Target Advisers managing partner Kenneth MacKenzie.

“By enabling The Abbeyfield Kent Society to move residents from an existing property to this new, purpose built care home, this transaction further demonstrates our ongoing commitment to support care home operators in delivering the highest standards of care in exceptional surroundings.

“The transaction brings our total funds committed since our May 2016 fundraise to £70m.”