Target Healthcare REIT is seeking to raise up to £40m to fund a £79m care home investment pipeline.
It aims to achieve this through a share placing at 109p per share, representing a 4% discount to yesterday’s closing price.
The pipeline comprises £51m of “imminent” acquisitions which it expects to commit to by the end of November 2018 and £28m of near-term acquisitions that are in advanced negotiations with vendors.
Malcolm Naish, chairman of the company, said: “We continue to see attractive opportunities in the market and have identified a strong short-term pipeline of assets that meet our strict investment criteria.
“These investments will allow us to continue to drive the positive momentum behind the growth of the portfolio, while increasing our exposure to the demographically strong South East market and further diversifying the occupier base with the introduction of new tenants.
“Additionally, by bringing new shareholders on to the register and increasing the market capitalisation of the company, the issue of equity will support improved liquidity and reduce the company’s ongoing costs per share.”
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