September 15, 2019 Finance

Target Healthcare REIT proposed issue of equity

Target Healthcare, a UK listed specialist investor in modern, purpose-built care homes, announces a placing of new ordinary shares. The Placing will target gross proceeds of approximately £50 million by way of a non pre-emptive placing under its existing Placing Programme at 110.5 pence per Placing Share .
· The Offer Price represents a discount of 6.2 per cent. to the closing share price of 117.8 pence per existing ordinary share in the capital of the Company on 4 September 2019 (being the last business day prior to the announcement of the Placing) and a premium of 2.8 per cent. to the Company’s unaudited EPRA NAV per Ordinary Share as at 30 June 2019 of 107.5 pence
· Further to the £18.6 million acquisition of the two properties in Stourport and Ripon announced on 23 August 2019, the Company has identified a near-term investment pipeline of approximately £92 million (the “Pipeline Assets”) consisting of ten assets which it expects to commit to acquiring by the end of 2019
The Company is expected to announce its 30 June 2019 annual results on 17 September 2019 at which point it will also publish a supplement to its existing placing programme prospectus dated 21 June 2019. The Placing will close at 11 a.m. on 25 September 2019.
Malcolm Naish, Chairman of the Company, said:
“Having raised circa £144 million of proceeds in 2018, including in an over-subscribed placing in November, we have now successfully deployed the majority of our existing cash resources, delivering a high quality and accretive, £500.9 million portfolio that is directly in line with our investment criteria – long leased, fit-for-purpose homes which provide their residents with en-suite wet rooms. This we regard as a crucial element of care and a key differentiator for our business.

“This proposed placing will enable Target  to maintain the momentum behind the growth strategy. The company  have already identified a significant pipeline of opportunities that will bring tenant and geographic diversification to the portfolio, as well as allowing them to continue to grow the size and scale of the business.”

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