Target Healthcare announces £9.7m acquisition

Stirling-based care home investor Target Healthcare has announced its new £9.7 million acquisition in Cheshire.

Target Healthcare announces £9.7m acquisition

John Flannelly, head of investment at Target Fund Managers

The company also announced that it has completed on three previously announced acquisitions in Yorkshire and Wales. The completion of the construction of the group’s care home development in Merseyside was also highlighted.

Target Healthcare raised capital from investors in September last year to take advantage of opportunities to increase the size of its portfolio.

The deals arrive as the company continues to spend the proceeds of its £80 million fund, The Insider reports.

The Cheshire deal has seen Target Healthcare enter into a forward funding agreement for the development of a new elderly care home in Rudheath. The completed care home will be let to an existing tenant, L&M Healthcare, on a 30-year lease.

John Flannelly, head of investment at Target Fund Managers, said: “We continue to identify and invest in modern, purpose-built care homes to grow the portfolio, leveraging our experience and proprietary research capabilities and at yields underpinning our ability to consistently deliver attractive returns for shareholders. The Cheshire development follows the £81.3 million of acquisitions announced in November 2019, meaning we have now completed on the pipeline transactions identified at the time of the September 2019 fundraise.

“These transactions demonstrate our ongoing commitment to support the development of high-quality care homes across the country, further strengthen our relationships with existing tenants whilst allowing us to support a new operator, with proven expertise in the care sector, to enter the care home market.

“We are working on a number of other opportunities that, subject to terms being agreed and diligence successfully completed, would see the remaining available capital being deployed in Q1 2020.”

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