- What Care home acquired in sale and leaseback deal
- Why Healthcare REIT secured operator on 35-year lease
- What next Undersupply a problem in the care home market
Target Healthcare, a listed care homes investor, has completed a £7.6m sale and leaseback deal in Nottingham.
The home has been operated since 2013 by Acacia Care, a local operator which has three homes, another of which is already owned by Target Healthcare.
The home has been leased back to them on a 35 year lease with an RPI-linked cap and collar. The yield on acquisition is consistent with the overall yield in the THRL portfolio and, as the home is already trading, there is no rent-free period.
Acorn House comprises 64 bedrooms – and is close to the centre of Nottingham in a densely-populated area.
John Flannelly, head of investment at Target Fund Managers, said: “This acquisition brings the number of assets in our portfolio to 63 including developments, and offers us the opportunity to support the growth of a tenant we regard as an operator of quality. The home has positive CQC ratings and provides a warm and welcoming environment for its residents.
“In addition to this investment, we have recently seen three forward fund developments in our portfolio open to residents. The care home market is undersupplied with the quality of asset which we provide, while demand is growing apace, underpinning our conviction in the portfolio we are assembling.”