Target Healthcare REIT has sold four UK later living care homes for a combined total of £44.5m to the incumbent tenant.
The four assets have a total of 326 beds and represent around 4.6% of the group’s overall portfolio value.
The properties, which were acquired as part of a portfolio deal in December 2021, were built in in 2007-2008 and had the group’s four shortest lease terms, with an average of 13.6 years remaining.
The sale will enable a partial repayment of the company’s revolving credit facilities and reduce its unhedged interest cost. Overall, the disposals reduce Target Healthcare’s net loan-to-value ratio by around 3.8%.
Scott Steven, head of asset management at Target Fund Managers, said: “These care homes have been a successful investment for the group, delivering a consistent and attractive rental yield over the period of ownership, combined with the realisation of a capital uplift on disposal.
“We care deeply about the quality of our assets and the services they facilitate; however, we are not unduly attached to holding onto the bricks and mortar where we identify opportunities to improve both the overall portfolio and the group’s capital structure.
“This disposal is a clear illustration of our ability to pro-actively manage the portfolio to provide an attractive and sustainable level of income, together with the potential for growth, from our diversified portfolio of modern, purpose-built care homes.”
