Target Healthcare REIT has acquired a new development site in Cheshire for £9.7m.

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The announcement comes after the REIT raised £80m last September through a share placing to help fund its expansion plans.

The group has acquired a development site and entered into a forward funding agreement for the development of an existing care home in Rudheath, Cheshire. Once completed, the home will be let to L&M Healthcare, an existing tenant, on a 30 year lease.

“We continue to identify and invest in modern, purpose-built care homes to grow the portfolio, leveraging our experience and proprietary research capabilities and at yields underpinning our ability to consistently deliver attractive returns for shareholders,” said John Flannelly, head of investment at Target Fund Managers, manager of the Target Healthcare REIT. “The Cheshire development follows the £81.3m of acquisitions announced in November 2019, meaning we have now completed on the pipeline transactions identified at the time of the September 2019 fundraise.

“These transactions demonstrate our ongoing commitment to support the development of high-quality care homes across the country, further strengthen our relationships with existing tenants whilst allowing us to support a new operator, with proven expertise in the care sector, to enter the care home market.

“We are working on a number of other opportunities that, subject to terms being agreed and diligence successfully completed, would see the remaining available capital being deployed in Q1 2020.”

Target Healthcare has also completed the acquisitions of two care homes in Yorkshire and a third home in Wales. The two separate acquisitions were previously announced on the exchange of contracts in November 2019 and September 2018 respectively.