A compelling investment opportunity for us to support a highly-regarded developer and Target's largest tenant to deliver an exceptionally well-appointed care home incorporating energy efficient features in a location which evidences strong demand for a high-quality care home.
Structured as a forward funding transaction, enabling the group to deploy capital during the development period and in advance of the property reaching practical completion.
Undertaken on the basis of a fixed price contract with the developer and predicated on an opening rent which is sustainable based on the characteristics of the local market.
The ungeared net initial yield generated from the operational home supports the group’s current dividend yield.
Continuing the relationship with Target’s largest tenant who has a successful track record of opening and commissioning new care homes.
Support for a highly experienced senior management team who exhibit a positive regulatory performance.
Strong financial covenant with cross-collateralisation from mature homes supporting rental payments, particularly during the initial stabilisation period.
An exceptionally well-appointed property comprising of 66 bedrooms, each with en-suite wetroom facilities, across three floors.
A substantial amount of public space on each floor, including large lounge / dining areas, several “quiet” lounges, an outdoor terrace on the first floor, themed cinema room, library and tearoom.
Energy efficient features incorporated into the real estate design, including a ground source heat pump, underfloor heating and energy efficient lighting, all contributing to the building achieving an EPC rating of “A”.
The local area evidenced an undersupply of “market standard” beds, with the local population weighted towards the older age categories.
Statistical care home bed demand forecast to increase by over 25% in the next ten years.
Good levels of affluence in the local area which supports the anticipated predominantly self-funded care home resident population.
Prominently located on a sizeable new residential housing development on the outskirts of Droitwich Spa.