Target Healthcare buys Yorkshire and West Midlands properties

Real estate investment trust Target Healthcare has acquired two properties for approximately £18.6m on Friday, both of which were let on 35-year leases.

Target said its acquisition of the Moors Care Centre in Ripon and the Wharf Care Centre in Stourport fully meet the group's strict criteria of modern, well-equipped care homes with 100% en-suite wetrooms, underpinned by "supportive fundamentals".

The Ripon site was constructed in 2015 and comprises 70 bedrooms each with full en-suite wetroom facilities, while the Wharf Centre was opened in 2018 and comprises 67 bedrooms with full en-suite wetroom facilities.

Target said that as was customary for new and nearly new care homes, a short rent-free period had been agreed in relation to the Wharf Care Centre in order to assist tenants' cash flows during the early trading period.

Head of investment John Flannelly said: "This transaction adds two further high-quality assets, in strong locations, to the portfolio and also allows us to welcome Maria Mallaband, a highly regarded national operator, to our tenant group.

"These acquisitions take us closer towards full deployment of our available capital and we continue to progress our identified pipeline of investment opportunities, with further announcements expected in the near future."

At 0825 BST, Target shares were down 0.17% at 117p.