Target Healthcare (THRL) has completed the acquisition of Acorn House, a care home in Nottingham, for about £7.6m, including transaction costs, through a sale and leaseback.
The home is operated since its opening by Acacia Care, a local operator of three homes, of which one is owned by THRL. The home is leased back to them on a 35-year lease with an RPI-linked cap and collar. The yield on the acquisition is consistent with the overall yield in the THRL portfolio and there is no rent-free period.
John Flannelly, Head of Investment at Target Fund Managers, commented: “This acquisition brings the number of assets in our portfolio to 63, including developments, and offers us the opportunity to support the growth of a tenant we regard as an operator of quality. In addition to this investment, we have recently seen three forward fund developments in our portfolio open to residents.”