Target Healthcare REIT Limited THRL

Formed in January 2013, the Target Healthcare REIT is a specialist investor in UK care homes and other healthcare assets. The company listed on the London Stock Exchange's Main Market on 7th March 2013, raising £45.6m of capital. Gross equity raised to-date is £143.5m.

In building its investment portfolio, and drawing on the specialist healthcare asset and fund management expertise of its fund manager, Target Advisers LLP, the Target Healthcare REIT will invest in care homes and other healthcare assets in the UK which seek to benefit from the following:

• changing UK demographics resulting in higher numbers of the elderly, and demand drivers for healthcare;
• patient choice, expectations as to quality of care home and the expectation of on-going growth of the private pay market;
• the forecast rise in acute, chronic illness and dementia; and
• a focus on new-build and compliant buildings with high quality care home operators as tenants.

The company's investment objective is to provide shareholders with an attractive level of income together with the potential for capital and income growth from investing in a diversified portfolio of freehold and long-leasehold care homes. Its investment approach focuses on:

• geographical regions and local markets with acceptable economic fundamentals, and a demand / supply imbalance for best-in-class homes supported by both the state and self-pay markets;
• high quality operators of largely new, purpose-built healthcare assets;
• care sub-markets with positive indicators for the long-term drivers of occupier demand such as nursing care;
• emerging sub-markets undergoing structual change or convergence with more established markets such as dementia care; and
• mis-pricing opportunities across a range of selective geographic areas and sub-markets, such as pre-let development funding.