Target Healthcare taps investors ahead of acquisition push
Target Healthcare REIT plans to raise £50m to plough into new acquisitions.
The care home investor will issue new shares at 111p per share, a discount of 4.8% to yesterday’s closing price, in a deal run by investment bank Stifel. The transaction will be the company’s first equity raising since September 2019.
Its investment manager, Target Fund Managers, has a pipeline of new acquisitions valued at £224m to add to its existing 76-property portfolio.
Target Healthcare REIT plans to raise £50m to plough into new acquisitions.
The care home investor will issue new shares at 111p per share, a discount of 4.8% to yesterday’s closing price, in a deal run by investment bank Stifel. The transaction will be the company’s first equity raising since September 2019.
Its investment manager, Target Fund Managers, has a pipeline of new acquisitions valued at £224m to add to its existing 76-property portfolio.
These include £47m of “imminent acquisitions” across three care homes and one forward funding project.
The company also has £177m of near-term deals in negotiation, including 10 care homes, five forward funding projects and one forward commitment to buy a prelet home.
In addition to the £50m issue, the company plans a new placing programme to raise further equity in the period from 4 March 2021 to 11 February 2022.
Chairman Malcolm Naish said: “The pandemic has starkly underlined the critical need for more high-quality, well-designed care homes. While we prudently paused our investment programme in the first half of 2020, we now believe there is sufficient visibility to return to our disciplined acquisition strategy.
“We have identified a strong pipeline of attractive potential investments and the structure of the fundraise we are announcing today provides us with the flexibility to be selective, but also to act quickly in a competitive market.”
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