Care provider to issue ‘mini bonds’ to fund construction of care home in Bolton
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Specialist dementia care provider Woodlands Care Group is to market a corporate bond issue to raise the £3m finance required to develop a new residential care home.
The group, headquartered in Wigan, is currently constructing a new 55-bedroomed property in Westhoughton, Bolton, due for completion next summer. Founder Sam Lancaster said the scheme would provide people with “the opportunity to invest in secured bonds that yield an attractive rate of interest” for between three and five years.
“This investment opportunity is a positive and pro-active way for people to make a real difference by enabling us to be able to reach out and assist even more people living with dementia,” said Mr Lancaster.
“Our initial research has shown that the bond issue is likely to appeal to investors whose family or friends have been affected by dementia experiences. This presents a truly ethical investment alternative to those seeking an inflation beating return on savings.”
Mr Lancaster said Woodlands was in a position to raise the £3m required to complete the new building from conventional sources, but had decided to offer bonds to the general public, giving everyone an opportunity to participate and enabling our fees to be very competitive.
“We seek to care for those with dementia in a friendly and happy environment, where the care required is tailored to individual needs and not standardised,” said Mr Lancaster.
“In the eight years that we have operated Woodlands , in Atherton, each of the bedrooms has consistently been occupied. We know from experience and research undertaken that there is a significant demand for the services that we offer.”
Mr Lancaster anticipates that residents in the new care home in Westhoughton will include a mix of privately-paying individuals as well as those referred by local authorities in the North West. Woodlands Care Group has engaged property investment bond specialists Best International, based in Knutsford, to issue bonds on its behalf and manage investor interest payments.
“Amongst the reasons that we became involved with Woodlands Care Group is that we are supportive of the ethos and style of the management team that are developing this new high quality dementia care home,” said Best International chief executive Brad Lincoln.
“Basically, mini corporate bonds are a type of loan that investors make to companies and our role is to ensure that the interests of all investors are protected throughout the term.”
Construction work on the 26,000 sq ft home began last spring and is being carried out by Hearle Homes, of Chorley.