Stirling-based care home landlord Target Healthcare has secured new tenants for six of its properties in the north of England after their operator announced it would be quitting in September.
Burlington Care takes over three care homes in Yorkshire from Orchard Care Homes while Sandstone Care takes on those in the North West.
Target – an AIM-listed real estate investment trust – said it had split the premises between two different operators to spread future risk of losing rental income. It has continued to receive the contracted rental income throughout the process. The re-tenanting will result in a small rise in valuation uplift for the portfolio, said Target.
Scott Steven, head of asset management at Target Fund Managers, said: “The successful re-tenanting of these care homes, within a relatively short timeframe and with no material financial impact, is a clear endorsement of the Group’s investment strategy to invest in modern, purpose-built care homes complete with wet-rooms, located in areas with strong underlying demographics and leased at sustainable rental levels to ensure the care homes are attractive to a range of operators.
“The need to progress re-tenanting strategies remains relatively rare, but where it is necessary we seek outcomes that maintain and, where possible, enhance the Group’s diversified income streams and portfolio value. Importantly, by acting as a responsible landlord, we have facilitated an outcome which has minimised disruption to the residents and staff who live and work in our homes.”
