HC-One sold via NHP acquisition by Formation/Safanad partnership
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Healthcare property group NHP , which owns 275 properties, including the UK’s third largest care provider HC-One, has been acquired for £477m by Formation Capital in partnership with Safanad, a global investment principal firm, and Court Cavendish, the healthcare turnaround specialist and management team at HC-One.
The deal brings total recoveries to NHP’s creditors to £507m over the last five years as NHP has sought to realise value for its lenders through the sale of assets. HC-One was formed in 2011 as a wholly owned subsidiary of NHP and then appointed Court Cavendish to take control of the NHP care homes following the collapse of Southern Cross The objective for the Court Cavendish team was to manage the homes and stabilise the organisation. Since then, NHP and its lenders have invested more than £90m into HC-One to ensure the business remains a stable, debt-free and fully funded organisation with a commitment to provide “the kindest possible care”.
The partners to the transaction said the sale of the portfolio and underlying business brought to an end one of the most difficult business rescues and turnarounds in the history of the UK health and social care sector.
The partnership with Formation and Safanad will seek to consolidate HC-One’s transformation, which it views as a provider with above average levels of occupancy. The new organisation plans to acquire further homes and diversify into retirement villages, residential, nursing and homecare – so becoming an integrated health and social care provider working in collaboration with public sector commissioners to deliver high quality and cost effective services.
Since 1999, Formation Capital and its investors have invested over $5.5bn of capital across the continuum of care in the senior housing sector. As part of this history, Safanad and Formation Capital have acquired more than $3bn in senior care assets since its strategic partnership in 2009.