Target Healthcare REIT gets £37 million committed term loan via Phoenix

By Marisa Wong

Los Angeles, Nov. 30 – Target Healthcare REIT plc, announced it has entered into a new long-term £37 million committed term loan facility with existing lending partner Phoenix Group.

The facility carries an aggregate fixed interest rate of 3.13% per annum on a 10-year term, maturing in January 2032, aligned with the group’s existing £50 million facility with Phoenix.

The facility is the first part of new loan facilities for the group, totaling £100 million, according to a press release. Completion of the remaining £63 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 Target Healthcare’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 its long income profile.

The company’s borrowing capacity now stands at £257 million, consisting of the new facility, the existing £50 million Phoenix facility, an existing £70 million committed term loan and revolver repayable on Nov. 5, 2025 facilities with Royal Bank of Scotland plc and an existing £100 million revolver repayable on Nov. 5, 2023 with HSBC plc.

Target Healthcare REIT is a U.K. specialist investor in modern, purpose-built care homes.

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