Target Healthcare has completed the purchases of two developments in Cumnor Hill, Oxford and Badgers Mount, near Sevenoaks in Kent, for £37m.
The remaining development works will be funded under capped development contracts to create two residential care homes with a combined total of 130 beds.
The properties will feature en-suite wetroom facilities, large communal areas and a “premium” fit-out.
Target said the investment was underpinned by the strong wealth characteristics and positive underlying demographics of the local areas.
Both developments are due to complete by mid-2019 and the completed homes will be let on a full repairing and insuring basis to luxury care home developer and operator Hamberley Group, which is backed by Patron Capital.
Hamberley has agreed to 35-year occupational leases include annual, upwards-only RPI-linked increases, subject to a cap and collar.
The yield is representative of assets of a similar standard and location within the group’s portfolio and rental payments will commence on occupation by Hamberley of the completed buildings.
Target said it had now committed to “a significant amount” of its £79m of near-term investment pipeline. It said it had identified near-term potential acquisitions currently in due diligence totalling around £42m.
It also pointed to a significant medium-term pipeline of potential opportunities, totalling more than £70m across eight different assets, that it aims to advance to heads of terms agreement.
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