Target Healthcare has completed the acquisition of a new development site in Rudheath, Cheshire for £9.7 million.
The acquisition is part of a forward funding agreement for the development of a new elderly care home on the site that will be let to an existing tenant, L&M Healthcare, on a 30-year lease.
The development is to be undertaken on the basis of a fixed-price contract with the developer, a sister company of L&M Healthcare, and has been pre-let on a full repairing and insuring lease with annual RPI-linked rent increases, subject to a cap and collar.
Target Healthcare has also completed on two previously announced acquisitions located in Yorkshire and Wales.
The Yorkshire and Wales acquisitions were previously announced on the exchange of contracts in November 2019 and September 2018, respectively.
The Yorkshire homes in Scarborough and Pudsey will be leased to a subsidiary of Burlington Care, an existing tenant which operates care homes in Yorkshire, North Lincolnshire and the North East of England.
The home in Newtown, Wales will be operated by Sandstone Care, a new tenant of the group.
In addition, Target Healthcare has reached completion on the development of a 55-bed care home in Birkdale, Merseyside, under a forward funding agreement.
The home, which opens this month, will be operated by Athena Healthcare Group, an existing tenant.
John Flannelly, head of investment at Target Fund Managers, commented: “These transactions demonstrate our ongoing commitment to support the development of high-quality care homes across the country, further strengthen our relationships with existing tenants while allowing us to support a new operator, with proven expertise in the care sector, to enter the care home market.”