Specialist care home investor Target Healthcare has purchased a development site in Rudheath for £9.7m, on which it plans to build a 68-bed elderly care home.
The luxury care home at 162 Middlewich Road has been pre-let to L&M Healthcare on a 30-year lease.
L&M operates five care homes across the North West, including Hulton Hall, a 74-bed care home in Preston, which opened last summer.
L&M received planning permission from Cheshire West & Chester Council last July to build the two-storey Rudheath facility, which is expected to complete later this year as the seventh care home in its portfolio.
The architect is Altrincham-based Red Apple Designs. “There is a desperate need for this facility in the borough,” director Bryan Walker said last year.
London Stock Exchange-listed Target Healthcare is a real estate investment trust that invests in purpose-built care homes across the country.
The Rudheath acquisition is part of a strategy to deploy the proceeds from a recently oversubscribed capital raise. The company has also completed on three previously announced acquisitions in Yorkshire and Wales, which will all be leased to a subsidiary of care home provider Burlington Care.
In addition, construction of Target Healthcare’s 55-bed care home development in Birkdale, Merseyside, is nearing completion, it said in a stock exchange filing on Monday. The facility is to be operated by Athena Healthcare Group.
The care home in Rudheath will be undertaken through a fixed-price contract with the developer, a sister company of L&M Healthcare, according to the filing.
John Flannelly, head of investment at Target Fund Managers, the part of Target Healthcare that led the acquisition, said the company is seeking further acquisition opportunities. “We continue to identify and invest in modern, purpose-built care homes to grow the portfolio,” he said.
“The Cheshire development follows the £81.3m of acquisitions announced in November 2019, meaning we have now completed on the pipeline transactions identified at the time of the September 2019 fundraise.
“These transactions demonstrate our ongoing commitment to support the development of high-quality care homes across the country.”