The new owners of a 69-bed Sheffield care home have announced plans to completely redesign and refurbish the property as part of a move to transform it into a premium offering.
Target Healthcare REIT completed the acquisition of Tapton Court in Sheffield earlier this week following support from specialist care property consultant HPC.
The home was built in the 1990s but closed two years ago. However, Target Healthcare REIT plans to spend a significant sum renovating the property in a bid to get it open by September.
The bedrooms will be enlarged and reduced in number to 46, and large ensuite bathrooms with wetroom showers added. Additional public space will be created, resulting in several lounges/dining space and a new conservatory, as well as the addition of a balcony affording good outdoor access.
The overall price for the acquisition and subsequent renovation of the home is £3.9m including costs.
Upon completion, the care home will be leased to Care Concern Group for a period of 35 years. The transaction represents a net initial yield in excess of 7%.
The rent payable under the lease is subject to an annual uplift in line with the retail prices index subject to a cap and collar.
This will be the third home which Care Concern operates in the Group’s portfolio, along with Mossvale Care Home in Glasgow and The Ashton in Hinckley, Leicestershire.
This transaction will see the overall funds invested by the Group in high quality care home assets rise to in excess of £165m.
Kenneth MacKenzie, managing partner of Target Advisers LLP, commented on the acquisition: “When the renovations and refurbishments are complete, this home will represent a very high quality asset which fits in well with our overall portfolio and will be an excellent example of investing in existing care home assets to deliver appropriate future proof assets of the right physical standards for the benefit of the sector.”
MacKenzie said the firm is working on a number of further transactions that it hopes to conclude in the coming months.
Ian Wilkie, director of HPC, who handled the sale on behalf of the vendor, added: “We are delighted to have once again acted successfully on behalf of this established client. We were also pleased to have had the opportunity to work with Target once again and to further assist in expanding their portfolio.”