Care trust portfolio hits £282m

Specialist care home investment trust Target Healthcare has seen the value of its portfolio of properties climb to £282 million after a string of acquisitions over the past year.

The company, which is managed by Stirling-based Target Advisers, increased the number of properties it owns to 45 in the year to 30 June, up from 37. The portfolio value was up from £210.7m the previous year.

Malcolm Naish, chairman, said the trust had continued to assemble a portfolio of UK care homes to deliver stable rental returns.

“We retain a conviction that placing long-term investment capital in purpose-built properties which offer suitably modern and well-equipped environments for residents and their carers, is the right thing to do.”

Naish said the company welcomed the greater discussion about elderly care funding prompted by policy ideas announced during the recent general election campaign. The trust also said that sterling’s devaluation since the Brexit vote had seen increased interest in the UK care home sector from overseas buyers.

Its most recent acquisitions have included an 88 bed home in Melton Mowbray, Leicestershire for £8.4m. It also acquired a development site in Birkdale, Merseyside, and entered into a contract to develop a home with 55 bedrooms. It is expected to be completed by March 2019, with a total development price of around £8.2m.

Since the financial year end the trust entered into a five year £40m term loan facility which has increased its debt facilities to £90m.

The Target Healthcare trust has outperformed its benchmark since launch, with an annualised total return of 10.4 per cent.