Target has announced the acquisition of well-advanced developments in Cumnor Hill, Oxford and Badgers Mount, Kent. The total transaction value of £37m is being funded partly by deploying the Group’s remaining uncommitted capital and partly by capped development contracts for further work to create two residential care homes with a total of 130 beds.
The developments, due for completion by mid-2019, will be let to Hamberley Group on a full repairing and insuring basis for 35 years. The leases include annual, upwards-only RPI-linked increases, subject to a cap and collar.
This acquisition utilises a significant amount of the £79m of near-term investment pipeline announced earlier. Further near-term potential acquisitions total c. £42m, in addition to about £70m of medium-term pipeline of potential opportunities across eight assets.