Target Healthcare REIT has bought a care home in Doncaster and a development site in Lancashire for a combined £13.9m.
The group has acquired the freehold of Cantley Grange, a modern purpose-built care home in Doncaster, South Yorkshire. It is operated by Orchard Care Homes.
The 40-bed home, which opened in 2007, has full en-suite wet-room facilities. It is let on a 35-year full repairing and insuring lease, with 24 years left.
The healthcare REIT has also acquired a development site and entered into a forward funding agreement in Burscough, Lancashire, which has planning consent for an 80-bed care home. The development, expected to complete in the fourth quarter of 2019, will be funded under a capped contract.
The development will be carried out in partnership with Athena Healthcare, an existing tenant of the REIT.
After completion, it will be let to Athena for 35 years on a full repairing and insuring lease with RPI-linked rent increases subject to a cap and collar.
John Flannelly, head of Investment at Target Fund Managers, said: “Combined with the Aura Care Living transaction announced in June and the acquisitions announced in March, the group has now deployed around 70% of the equity raised in February of this year. The remainder of available capital is expected to be committed in the near future.”
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