November 26, 2019 Property

Target Healthcare REIT acquires Darrington Healthcare care home portfolio

Knight Frank, a leading commercial property adviser, has advised Darrington Healthcare on the sale of a portfolio of care homes in Yorkshire, to Target Healthcare REIT, for an undisclosed sum.

The portfolio includes Oak Park Care Home, Dewsbury; Willow Park Care Home, Pontefract; Birch Park Care Home, Cleckheaton; Elm Park Care Home, Doncaster; and Sycamore Park Care Home, Huddersfield; which all provide future-proof care home accommodation.

The facilities offer residential, nursing and dementia care, with approximately 360 beds, as well as amenities such as cinemas and salons.

The homes are leased to Bondcare on new 35-year RPI-linked leases as part of the deal.

Nick Kempster, Associate in Healthcare Agency and Development at Knight Frank, said: “We are pleased to have advised the shareholders of Darrington Healthcare on the sale of their high-income generating portfolio of care homes, which has consistently seen strong occupancy rates and offers a stable platform for the incoming tenant.

“This deal once again shows the demand from institutional investors for long indexed leased income within the healthcare sector and builds on our recent successes of Project Mayfair and Project Campion, both which were both structured in the same way.

“Our research shows that most care homes in the UK are less than 40 beds. Over the next 20 years, the market will increasingly look to replace smaller period-style properties with larger, high specification care homes fit for future demand and offer a more holistic service to cover service needs.”

John Flannelly, Head of Investment at Target Fund Managers, commented: “We are delighted to have completed the acquisition of this high-quality portfolio of care homes which has given us the opportunity to strengthen our relationship with an existing tenant. The complex transaction process was professionally managed at all times by the Knight Frank team.”


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