Care home investor Target Healthcare REIT has said competition in its investment market is picking up as new buyers look to the UK for opportunities.
In a trading update, Kenneth MacKenzie, chief executive of investment manager Target Fund Managers, said the company had “cautiously resumed investment” since the summer, with a goal to “carefully balance moving towards full investment, which will generate returns to fully cover the dividend, with the prudent retention of flexible debt capital”.
The company said: “The investment market for high-quality, modern, fit-for-purpose assets which meet the group’s investment criteria remains very competitive. We are witnessing strong appetite from market participants, inclusive of some new entrants to the UK alternatives asset class. The best properties and sites continue to transact at the pricing levels seen prior to the Covid-19 pandemic.”
The REIT is weighing up several potential acquisitions, with some in the due diligence phase.
In the three months to the end of September, NAV was stable quarter-on-quarter at 108p per share. There was a 0.5% increase in the value of the portfolio, at £637.5m.
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