Target Healthcare eyes acquisitions

Target Healthcare REIT has resumed its investment activity, with a pipeline of “attractively priced opportunities” under consideration. EPRA NAV per share at the investor, which specialises in purpose-built care homes, has marginally increased to 108.1p, from 108p in March. Total property portfolio value reached £617.6m, with a 0.5% like-for-like increase in the value of its operational portfolio. Rental growth has increased by 0.4% on a like-for-like basis. The REIT noted that confirmed or suspected cases of Covid-19 are affecting residents occupying less than 0.3% of the portfolio’s beds, a significant reduction from a 3.2% peak in mid-April. While portfolio occupancy fell as a result of tenants imposing tighter restrictions on admissions during the lockdown, the landlord said admission activity is picking up, with tenants reporting an encouraging number of enquiries. The firm has returned to its investment programme with a deal to buy a new-build, 66-bed care home in Bicester for £15m, which completed earlier this week. It is let to Ideal Carehomes on a 35-year, fully repairing and insuring occupational lease. Kenneth MacKenzie, chief executive of Target Fund Managers, said: “While we remain alert to further economic and sectoral headwinds, and will remain highly disciplined as we look to grow the portfolio, through the strength of our local market expertise and strong stakeholder partnerships, we have an identified pipeline of attractively priced opportunities which we are carefully considering.”   To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette