Woodland View

Development / Investment Case 

• A compelling investment opportunity for us to support a highly-regarded developer and Target's largest tenant to deliver an exceptionally well-appointed care home incorporating energy efficient features in a location which evidences strong demand for a high-quality care home.
• Structured as a forward funding transaction, enabling the group to deploy capital during the development period and in advance of the property reaching practical completion.
• Undertaken on the basis of a fixed price contract with the developer and predicated on an opening rent which is sustainable based on the characteristics of the local market.
• The ungeared net initial yield generated from the operational home supports the group’s current dividend yield.

Operating Partners 

• Continuing the relationship with Target’s largest tenant who has a successful track record of opening and commissioning new care homes.
• Support for a highly experienced senior management team who exhibit a positive regulatory performance.
• Strong financial covenant with cross-collateralisation from mature homes supporting rental payments, particularly during the initial stabilisation period.

Real Estate

• An exceptionally well-appointed property comprising of 66 bedrooms, each with en-suite wetroom facilities, across three floors.
• A substantial amount of public space on each floor, including large lounge / dining areas, several “quiet” lounges, an outdoor terrace on the first floor, themed cinema room, library and tearoom.
• Energy efficient features incorporated into the real estate design, including a ground source heat pump, underfloor heating and energy efficient lighting, all contributing to the building achieving an EPC rating of “A”.

Location

• The local area evidenced an undersupply of “market standard” beds, with the local population weighted towards the older age categories.
• Statistical care home bed demand forecast to increase by over 25% in the next ten years.
• Good levels of affluence in the local area which supports the anticipated predominantly self-funded care home resident population.
• Prominently located on a sizeable new residential housing development on the outskirts of Droitwich Spa.