TIDMTHRL
RNS Number : 9534T
Target Healthcare REIT PLC
30 November 2021
30 November 2021
Target Healthcare REIT plc and its subsidiaries
("Target Healthcare" or "the Group")
New long-term institutional debt facility
Target Healthcare REIT plc, the UK listed specialist investor in
modern, purpose-built care homes, announces that it has entered
into a new long-term GBP37 million committed term loan facility
(the "Facility") with Phoenix Group ("Phoenix"), an existing
lending partner. The Facility carries an aggregate fixed rate of
interest of 3.13% per annum on a 10-year term, maturing in January
2032, aligned with the Group's existing GBP50 million facility with
Phoenix.
The Facility is the first part of new loan facilities for the
Group, totalling GBP100 million. Completion of the remaining GBP63
million, which will have a longer duration and which is in the
final stages of the legal and diligence process, is expected to be
aligned with the Group's acquisition of a portfolio of 18 modern
care homes. Combined, the new facilities will lengthen the Group's
weighted average term to maturity and have been secured on
attractive and competitive long-term fixed interest rates,
providing cash flow certainty to match with the Group's long income
profile.
The Group's total borrowing capacity now stands at GBP257
million comprising the Facility, the existing GBP50 million Phoenix
facility and existing facilities with The Royal Bank of Scotland
plc (GBP70 million committed term loan and revolving credit
facility repayable on 5 November 2025) and HSBC plc (GBP100 million
revolving credit facility repayable on 5 November 2023).
Gordon Bland, Finance Director of Target Fund Managers,
commented:
"Entering into another facility with Phoenix is testament to
both the continued strength of our relationship with our existing
lenders and the attractiveness of the Target model.
"The portfolio's performance during COVID has been robust, with
the quality of our real estate and our tenants' ability to astutely
manage their businesses providing an attractive proposition to
lenders. 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."
Target Healthcare REIT plc legal entity identifier:
213800RXPY9WULUSBC04
Enquiries:
Target Fund Managers Limited
Kenneth MacKenzie, Gordon Bland
01786 845 912
Stifel Nicolaus Europe Limited
Mark Young, Mark Bloomfield
020 7710 7600
FTI Consulting
Dido Laurimore; Claire Turvey; Richard Gotla
020 3727 1000
TargetHealthcare@fticonsulting.com
Notes to editors:
UK listed Target Healthcare REIT plc (THRL) is an externally
managed Real Estate Investment Trust which provides shareholders
with an attractive level of income, together with the potential for
capital and income growth, from investing in a diversified
portfolio of modern, purpose-built care homes.
The Group's portfolio at 30 September 2021 comprised 79 assets
let to 28 tenants with a total value of GBP702.7 million.
The Group invests in modern, purpose-built care homes that are
let to high quality tenants who demonstrate strong operational
capabilities and a strong care ethos. The Group builds
collaborative, supportive relationships with each of its tenants as
it believes working in this way helps raise standards of care and
helps its tenants build sustainable businesses. In turn, that helps
the Group deliver stable returns to its investors.
About Phoenix Group
Phoenix Group are the UK's largest long-term savings and
retirement business, with GBP300bn of assets under administration
and c.13 million customers.
Phoenix are a growing and sustainable business with a clear
purpose - helping people secure a life of possibilities. This means
taking responsible and sustainable investment decisions, and using
its presence and voice to advocate on behalf of the UK's savers.
Phoenix understands that its scale and expertise means that it has
an important role to play for its customers, colleagues and its
communities.
As life expectancy continues to increase and the pension
landscape continues to shift, Phoenix will continue to be a safe
and dependable ally in the journey to and through retirement for
millions of customers, by providing the right guidance and
products, at the right time, to support the right choices. Phoenix
offers a broad range of products for people across all stages of
the savings life cycle.
Phoenix's strategy focuses on delivering long term, sustainable
value and, to fulfil its purpose, focuses on five key areas to
ensure we respond to changing customer needs, manage its capital
position well, create value, inspire its people, and put
sustainability at the heart of its business.
Phoenix is a FTSE 100 company and features in the FTSE 100 ESG
Select Index. In 2020 Phoenix committed to its operations being net
zero carbon by 2025 and its investment portfolios by 2050. Phoenix
is playing an active role in helping to build back better and
greener as it invests for the future. Phoenix is a Living Wage
Employer and recognised as a Carer Positive Exemplary for offering
the best support to colleagues who are carers.
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