September 27, 2019 Finance

Target Healthcare REIT results of placing

The Board of Directors of the Company is pleased to announce that it has successfully raised gross proceeds of £80 million through an oversubscribed issue of 72,398,191 Ordinary Shares by way of a placing under its existing Placing Programme. Investor demand for the Placing Shares exceeded the gross proceeds initially targeted by the Company. After careful consideration of the pipeline of suitable investment properties available, the Board determined to increase the size of the Placing to 72,398,191 Placing Shares at 110.5 pence per share. Notwithstanding the increased number of Placing Shares made available pursuant to the Placing, investor demand still exceeded the gross proceeds targeted and as such a scaling back exercise has been undertaken.
Applications will be made in respect of the 72,398,191 Placing Shares to be issued pursuant to the Placing to be admitted to the premium segment of the Official List and to trading on the London Stock Exchange’s Main Market for listed securities (“Admission”). It is expected that Admission will become effective and dealings in the Placing Shares will commence on 30 September 2019. When issued, the Placing Shares will rank pari passu with the existing Ordinary Shares, including the right to receive all future dividends and distributions declared, made or paid after Admission.
Following Admission, the Company expects to have 457,487,640 Ordinary Shares in issue. The total number of voting rights of the Company will be 457,487,640 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules.
Unless otherwise defined, the terms used in this announcement shall have the same meaning as set out in the prospectus published by the Company and sent to Shareholders on 21 June 2019 (the “Prospectus”), as amended, copies of which are available on the Company’s website at www.targethealthcarereit.co.uk.

Malcolm Naish, Chairman of the Company, said:
“The success of this oversubscribed placing is a strong endorsement of our investment strategy and will enable us to continue with our efforts to grow the size and scale of the business. We have identified a significant pipeline of opportunities that will deliver strong returns to our investors whilst bringing tenant and geographic diversification to the portfolio and maintaining our commitment to owning the best quality care homes.”

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