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Target Healthcare REIT invests £45m in Scottish care homes

Mon 01 Dec 2025 07:12

(Sharecast News) - Specialist investor Target Healthcare REIT said on Monday it had acquired three operational care homes in Central Scotland and contracted on a forward commitment to purchase a fourth, in deals worth £45m.

Target Healthcare said the investment reflected a blended net initial yield of more than 6%, reinvested over half of the proceeds from its recent disposals, and would be immediately earnings accretive.

The three existing homes were bought via sale and leaseback from an experienced operator and consistently generated rent cover above 2x, serving a private‑pay client base underpinned by strong local demographics. Each property was let on a 35‑year, full repairing and insuring lease with RPI‑linked caps and collars.

The fourth property, pre‑let to the same operator, was already under development, expected to be completed in summer 2026, and will feature full en suite wet‑room provisions, high ESG standards targeting top certifications, and net zero carbon operational capability.

Target Healthcare also noted that it had disposed of nine care homes in September for £85.9m, its largest sale since IPO, at an 11.6% premium to carrying value.

Reporting by Iain Gilbert at Sharecast.com

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