UK-listed care home investor Target Healthcare has announced a placing of new ordinary shares.
The placing will target gross proceeds of approximately £50m.
The offer price represents a discount of 6.2% to the closing share price of 117.8 pence per existing ordinary share in the capital of the company on 4 September 2019.
Malcolm Naish, chairman of the company, said: “Having raised circa £144m of proceeds in 2018, including in an over-subscribed placing in November, we have now successfully deployed the majority of our existing cash resources, delivering a high quality and accretive, £500.9m portfolio that is directly in line with our investment criteria – long leased, fit-for-purpose homes which provide their residents with en suite wet rooms. This we regard as a crucial element of care and a key differentiator for our business.
“This proposed placing will enable us to maintain the momentum behind the growth strategy. We have already identified a significant pipeline of opportunities that will bring tenant and geographic diversification to the portfolio, as well as allowing us to continue to grow the size and scale of the business.”
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