The Oaks

Development / Investment Case

• Target’s ethos is to provide high quality, modern care homes to communities across the United Kingdom. This opportunity allowed Target to partner with a new operator with a strong care ethos to deliver an exceptional care home in a regional town where previously the care choices for elderly residents had been limited.
• Target committed to acquire the home from the developer once the development had completed. The price agreed for the turnkey home was based on the opening rent which was set and agreed with the operator at a sustainable level based on the micro location.
• The developer was able to secure development funding to progress the development with the certainty of an exit at practical completion.
• The ungeared net initial yield generated from the operational home supports the group’s current dividend yield.

Operating Partner

• The development of The Oaks was the first home for this new, quality and care focused group.

• Partnered individuals with a proven track record in the care sector to establish a new care group.

• Growing operator providing the potential for follow-on investment. The group now owns four homes that are operated by this now established care group.

Real Estate

• A well-appointed property comprising of 70 bedrooms (all with en-suite wetroom facilities) across three floors.

• The home benefits from significant public space on each floor including lounge and dining areas as well as smaller quiet lounges and libraries thereby allowing residents to a choice of space depending on their personal preference.

• The residents have the use of a café / bistro by the reception, a hairdresser, a cinema / activity room and a large resident’s garden.

Location

• The care home is located in a prominent location, in a residential setting, the outskirts of the Welsh town of Newtown.
• The competing stock is of poor quality and there are no other care homes in the catchment area that offer bedrooms with en-suite wetrooms.
• No other new care home developments in planning.