Target Healthcare REIT buys three care homes for £20.9m

Target Healthcare Real Estate Investment Trust has completed the acquisition of three care homes for a combined £20.9m.

The care homes have increased the company’s portfolio to 45 properties and that it has now invested around £270m in care homes since its inception, with a about £90m committed since it raised funds last May.

Willow Park Lodge in Dover, Kent was bought for £6.1m including costs and has 79 large bedrooms over four floors. It will be was leased back to Athena Healthcare who developed the property, and is subject to a 35-year lease with RPI-linked uplifts with a cap and collar.

This is the second home in the London-listed company’s portfolio with Athena, along with a home in Southport.

Target Healthcare also bought Kirby Cross near Frinton-on-Sea, Essex and Sutton-in-Ashfield, Nottinghamshire for a combined £14.8m including costs.

Care Concern leased Beaumont Manor near Frinton-on-Sea and Oakdale Care Group is the tenant at Kingfisher Court in Sutton-in-Ashfield.

John Flannelly, investment partner of Target Advisers LLP, said: "We have been impressed with the quality of care which Athena offer and the addition of another home in the southeast of England will enable us to further support their growth plans. In addition, the completion of the Frinton-on-Sea and Sutton-in-Ashfield transactions add further high quality assets and a new operator to the portfolio, further broadening our tenant base.”

Shares in Target Healthcare REIT were up 0.32% to 116.38p at 0913 BST.