Target Healthcare REIT, which invests in modern purpose-built care homes, is raising approximately £125 million in a share issue at an issue price of 115p per new ordinary share.

Target’s investment manager has a pipeline of acquisition opportunities in its sights, including a portfolio of 18 care homes generating an annual contracted rent of £9.1 million, which the company has agreed to acquire.

In addition, six assets are in the final stages of due diligence – three operational modern care homes and three forward-fund, pre-let development projects,

Target is also in advanced negotiations for £100 million of long-term debt from one of the group’s existing lenders which will be used to part-fund the pipeline assets

Malcolm Naish, chairman of Target Healthcare REIT, said: “Against by far the most challenging backdrop in the company’s history, our modern purpose-built care home portfolio has been a consistent and robust performer, with rent collection of 95% for the three most recent quarters, continued valuation uplifts and improving occupancy levels.

“At a time of increasing investor appetite for the stable, uncorrelated returns that our portfolio has consistently delivered, we believe these transactions will be transformational both in terms of scaling the company and providing greater diversification by tenant and geography, as well as our mission to take a leading role in supporting and improving the UK care sector.”

Date published: September 9, 2021

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