Specialist UK REIT Target Healthcare has completed the acquisition of two properties, in Ripon, Yorkshire and Stourport, West Midlands, for approximately £18.6 mln (€20.6 mln).
According to Target, the yield is representative of assets of a similar standard and location within the group’s portfolio.
The Moors Care Centre, in Ripon, was constructed in 2015 and comprises 70 bedrooms each with full en-suite wetroom facilities. The home is operationally mature and its current trading performance is delivering a rent cover in excess of 2.0x, Target said.
The Wharf Care Centre, Stourport opened in 2018 and comprises 67 bedrooms with full en-suite wetroom facilities. The home is located in a predominantly residential area, close to the centre of Stourport.
The homes are let on 35-year leases with RPI-linked cap and collar to a subsidiary of Maria Mallaband Care Group, the national care home operator.
;This transaction adds two further high quality assets, in strong locations, to the portfolio and also allows us to welcome Maria Mallaband, a highly regarded national operator, to our tenant group,' said
John Flannelly, head of investment at Target Fund Managers.
'The group now has a highly diversified portfolio consisting of 63 assets (including developments), leased to 26 different operators,' Flannelly added.
As is customary for new and nearly new care homes, a short rent free period has been agreed in relation to the Wharf Care Centre to assist the tenant’s cashflows during the early trading period.