Target Healthcare REIT announces acquisition of purpose built care home in Norfolk (UK)

Target Healthcare REIT Limited and its subsidiaries, a specialist investor in UK care homes, announces that it has acquired a purpose-built care home in Swaffham, Norfolk for approximately £4.5 mln (approx. €6mln) including acquisition costs. This transaction is in accordance with the Group’s investment policy.
The home, Iceni House, is a modern two level property with 74 bedrooms arranged around a central courtyard, each with full en-suite bathrooms with wet-room showers. It is well served with a number of lounges, dining rooms and quiet rooms, as well as a hairdressing salon.
The property has been acquired from Zest Investment Group, and leased to Norfolk Care Homes Limited on an existing 30 year lease with circa 23 years remaining. The Purchase Price represents an initial yield in excess of 7%. The rent payable under the lease is subject to an annual RPI-linked uplift, subject to a cap and collar.
The Group has invested in excess of £142 mln (approx. €190.2mln) (including acquisition costs) in its portfolio of care home assets.
Kenneth MacKenzie, Managing Partner of Target Advisers LLP, commented: “We are pleased to announce the acquisition of this home, which is the 28th property acquired by the Group. It adds another operator, widening our tenant base, and provides a high quality of care in a welcoming environment. We have a number of other deals in advanced non-binding legal negotiations, and we expect to make further acquisitions in the near future.”
Source: Target Healthcare