Target Healthcare secures £37m loan facility

UK-listed Target Healthcare REIT, which invests in purpose-built UK care homes, has entered a new long-term £37 million debt facility with Phoenix Group, an existing lending partner.

It is the first part of a total of £100 million in new loan facilities. The REIT says that the remaining £63 million is to be aligned with the acquisition of 18 additional care homes.

The loan agreement carries a 3.13% per annum interest rate on a ten-year term, maturing in January 2032, aligned with Target Healthcare’s existing £50 million facilities with Phoenix.

Gordon Bland, finance director of Target Fund Managers said: “The portfolio’s performance during COVID has been robust. This additional debt funding for the group aligns with our strategy of continuing to grow the platform sustainably alongside efficiently managing the capital structure.

“Importantly, in an environment where the future outlook for interest rates remains uncertain, fixing a significant proportion of our interest costs when combined with our inflation-linked income profile helps us to provide sustainable and progressive long-term returns to shareholders.”

Date published: December 10, 2021

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