Target Healthcare sells four assets

Target Healthcare has sold four care homes with a combined 326 beds to their tenant for £44.5m. In a stock market notice, the company said the sale price reflected a “modest” premium to the carrying value at both 31 December 2023 and 31 March 2024, and an implied net initial yield of 5.64%. The sites were some of the oldest in the company’s portfolio, having been purchased in 2021. The assets represented 4.6% of the group’s overall portfolio value, and their sale will enable a partial repayment of its revolving credit facilities, reducing net loan-to-value by approximately 3.8%. Scott Steven, head of asset management at Target Fund Managers, said: “These care homes have been a successful investment for the group, delivering a consistent and attractive rental yield over the period of ownership, combined with the realisation of a capital uplift on disposal. We care deeply about the quality of our assets and the services they facilitate; however we are not unduly attached to holding onto the bricks and mortar where we identify opportunities to improve both the overall portfolio and the group’s capital structure. “This disposal is a clear illustration of our ability to proactively manage the portfolio to provide an attractive and sustainable level of income, together with the potential for growth, from our diversified portfolio of modern, purpose-built care homes.”