Target Healthcare REIT buys care home for £2.3m

Shares in Target Healthcare REIT gained on Thursday after announcing the acquisition of a specialist care home in Bricket Wood, St Albans for £2.3m.

Target Healthcare said the 12-bed specialist care home has been re-designed and extensively refurbished.

The investor of UK care homes added that the transaction represented a net initial yield in excess of 7%. The rent payable under the lease is subject to upwards-only annual uplifts in line with the retail prices index.

Following the completion of the acquisition, the group will lease back the care home to specialist care provider HSN Care for 50 years.

Shares rose 1.03% to 109.06p at 1555 GMT.