Target Healthcare REIT has raised £125m through an oversubscribed share issue to help fund an acquisition spree including 18 operational care homes worth a combined £230m.
After consideration of the strong level of support of demand from investors, Target directors opted to increase the size of the share issue from the initial £100m to £125m.
The shares, which will start dealing on 14 September, will be issued at 115 pence each.
“We are extremely grateful to both our existing and new shareholders for their support with this considerably oversubscribed equity raise,” said chairman Malcolm Naish.
“Our conviction in both the quality of our existing portfolio, which is characterised by its inflation linked, long-income characteristics, as well as the compelling investment opportunity in the part of the care home market that we are focused on, is steadfast,” he added.
Target has entered into an agreement to acquire the 18 care homes that generate an annual contracted rent of £9.1m and has collected 100 per cent of rent due throughout the pandemic.
A further six assets are the final stages of due diligence consisting of three operational modern care homes and three forward-fund, pre-let development projects.
Target is also in advanced negotiations in relation to raising a further £100m of long-term debt that will be used to part-fund the pipeline assets from one of the group's existing lenders.
