Target Healthcare strikes deal over unpaid rent
Target Healthcare has struck a deal with the tenant of seven of its care homes over rent arrears.
The FTSE 250 company had said last month that it aimed to “re-tenant” nine homes from two tenants to “alleviate the impact on recent rent collection”.
This morning it said it has reached a deal with the unnamed incumbent tenant and operator of seven of those homes under which the tenant will remain.
Target Healthcare has struck a deal with the tenant of seven of its care homes over rent arrears.
The FTSE 250 company had said last month that it aimed to “re-tenant” nine homes from two tenants to “alleviate the impact on recent rent collection”.
This morning it said it has reached a deal with the unnamed incumbent tenant and operator of seven of those homes under which the tenant will remain.
Target added that the full settlement of outstanding rent to 30 June has now been received, lifting rent collection for that quarter to 94% from 90%, and for the quarter ended 31 March to 95% from 92%. All rent due for the current quarter has been received, as has penalty interest for overdue rent.
Scott Steven, head of asset management at Target Fund Managers, said: “The commitments made by all parties during this process is strong evidence of the trading outlook for these assets, and of the overall demand for modern, ESG-compliant care home real estate from progressive, quality care providers.
“Underlying resident occupancy across our portfolio continues its steady recovery and reflects the long-term structural demand for care places in our homes. This is long-awaited from our tenants and while mindful of the inflationary and staffing headwinds they face, we are generally optimistic that trading improvements will continue in the coming months.”
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