Target Healthcare takes aim at £100m equity raise
Target Healthcare REIT is looking to raise around £100m to boost its acquisition pipeline.
The latest issue, which sits alongside its existing placing programme, is priced at 115p per share. This represents a 5.9% discount to its 122.2p share price at market close yesterday, and a 4.2 premium to EPRA NAV per share.
The REIT said it has its strongest pipeline of acquisition opportunities to date. This includes a portfolio of 18 care homes, which Target has signed an exclusivity agreement to acquire.
Target Healthcare REIT is looking to raise around £100m to boost its acquisition pipeline.
The latest issue, which sits alongside its existing placing programme, is priced at 115p per share. This represents a 5.9% discount to its 122.2p share price at market close yesterday, and a 4.2 premium to EPRA NAV per share.
The REIT said it has its strongest pipeline of acquisition opportunities to date. This includes a portfolio of 18 care homes, which Target has signed an exclusivity agreement to acquire.
The acquisition portfolio generates annual contracted rent of £9.1m, with a 100% rent collection rate throughout the pandemic.
Six assets are in the final stages of due diligence, consisting of three operational modern care homes and three forward-fund, prelet development projects.
Target added that it is in advanced negotiations in relation to £100m of long-term debt from one of the group’s existing lenders, which will partly fund the pipeline assets.
Malcolm Naish, chairman of Target Healthcare, said: “At a time of increasing investor appetite for the stable, uncorrelated returns that our portfolio has consistently delivered, we believe these transactions will be transformational both in terms of scaling the company and providing greater diversification by tenant and geography, as well as our mission to take a leading role in supporting and improving the UK care sector.”
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