HPC Sells 106 Bed Care Home to Target Healthcare REIT

Another successful completion brokered by HPC in the care home sector. Purpose built home will be let to a subsidiary of Bondcare Group.

HPC has announced the sale of a care home in Halifax to Target Healthcare REIT Limited and its subsidiaries (“the Group”), the only listed specialist investor in UK care homes. The deal completed for approximately £7.2 million including acquisition costs. This transaction is in accordance with the Group's investment policy.

The home, Summerfield House, is a modern purpose-built facility with 106 beds over three floors, having been opened in 2012. Situated in a prominent position near the centre of Halifax, the home sits in pleasant grounds and benefits from a number of lounges, dining rooms, a coffee shop and a hairdressing salon.

Upon acquisition the home was let to a subsidiary of the Bondcare Group, the national care operator founded in 1996. Bondcare Group is an existing tenant of the Group, operating homes in Birmingham and Nottingham in the Group’s portfolio. The home is 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.

Ian Wilkie, Director of HPC acted on behalf of the vendor, Ideal Care (North) Ltd. He commented, "we are pleased to have concluded another successful transaction in the care home sector. In spite of the challenges facing social care at present, this demonstrates there is still appetite for good quality assets and well managed businesses."

Kenneth MacKenzie, Managing Partner of Target Advisers LLP, commented, “we are pleased to announce the acquisition of this home, which adds a further good quality asset to our portfolio and allows us to support the growth of an existing tenant’s business. This acquisition was contemplated during our recent successful fundraise and we continue to progress other opportunities as we look to invest those proceeds in a timely fashion. We expect to make further announcements in due course.”