UK-listed investor Target Healthcare has completed the purchase of two development sites for a total of £37m.
Building work for two residential care homes with a combined total of 130 beds in Cumnor Hill, Oxfordshire, and Badgers Mount, Kent, are at an advanced stage. When open the Oxfordshire development will be known as Chawley Grove and the Badgers Mount site will operate as Halstead House.
The properties will include full en-suite wetroom facilities and large communal areas.
Both developments are due to complete by the middle of next year and will be let on a full repairing and insuring basis to Hamberley Group, a developer and operator of luxury care homes, which is backed by Patron Capital, the pan-European institutional investor.
Hamberley, which will be Target’s 22nd tenant, previously established Gracewell Healthcare and The Badby Group.
Daniel Kay, director of Hamberley Development, said: ‘The sale demonstrates the success of the design and development of our state of the art care homes in the UK. There is a growing demand for this type of leading-edge luxurious care environment and we are actively seeking out new opportunities. ‘
Each property has a 35-year occupational lease, which includes annual, upwards-only retail price index-linked increases, subject to a cap and collar.
John Flannelly (pictured), Target Fund Managers head of investment, said: ‘We are delighted to announce the completion of this transaction which enables us not only to add two premium, purpose-built properties to the portfolio, but also welcome a highly-regarded operator into our tenant group.’
Target has committed a significant amount of the £79m worth of investments identified in its announcement on 24 October.
It is carrying out due diligence on further acquisitions totalling approximately £42m. In addition to this, there is a pipeline of potential opportunities for more than £70m across eight different assets.