Target Healthcare REIT is to acquire a purpose-built care home in the village of Kirby Cross near Frinton-on-Sea in Essex for £9.2m. Completion of the transaction is expected in January 2017.
When the build is completed, the care home will offer 82 bedrooms over two floors in an impressive building set in grounds with views over neighbouring fields. The home is constructed in a spacious style and will be completed to the highest standards, and will boast two large light-filled atriums, several lounges, a cinema room and a bar. A number of rooms will feature separate lounge and bedroom areas, including their own kitchen.
Upon completion the property will be leased to existing tenant Care Concern group, and will be subject to a 35-year lease with RPI-linked cap and collar. The net initial yield on the transaction is consistent with the overall average of the Group's portfolio. This will be the fourth home in the Group's portfolio with Care Concern as tenant, following the completion of renovation works on Tapton Court in Sheffield expected in late summer 2016.
Kenneth MacKenzie, Managing Partner of Target Advisers LLP, commented on the acquisition, 'We are very pleased to announce this exchange of contracts. When completed this home will be a high quality offering to the local market with a tenant that provides care which helps enrich the lives of their residents. This transaction is the fourth since our recent successful fundraise announced in early May 2016, and we expect to make further announcements in due course.'