Global real estate advisor CBRE has advised Gold Care Homes on the sale and leaseback of 18 care homes for about £90m to an overseas real estate investor.
Established in 1999, Gold Care Homes has since grown to operate 21 care homes through development, mergers and acquisitions. The homes are located throughout southern and central England, and focus on the private and public pay markets. The transaction involves 18 of the homes, located mainly in Southern England and Birmingham. The remaining homes will be operated outside the sale and leaseback agreement.
CBRE’s Peter Farnes said the this latest transaction showed the continued appetite from international investors for UK healthcare assets and the elderly care market.
“This underscores the growing investor demand to grow and develop regional care businesses and benefit from index linked returns,” said Mr Farnes.
“The transaction provides Gold Care Homes with … Read More »
Housing and care provider Sanctuary Group has purchased three care homes from LNT Care Developments.
he homes, which will be built in Pensby in Merseyside, Nantwich in Cheshire and Devizes in Wiltshire, are ‘turnkey’ properties, which means Sanctuary will take on ownership and management once they are built and fitted out. Their locations have been carefully selected to dovetail with the group’s existing care homes, which are managed by the group’s subsidiary Sanctuary Care.
Sanctuary Care runs 68 homes around the country,most of which are in the midlands and south, serving thousands of residents. The Pensby home will have 60 bedrooms and is due to open in January 2018, the Nantwich home, also 60 beds, is due to open in April 2018 and offering 66 bedrooms, the home in Devizes is due to open in July 2018.
The three new homes will be … Read More »
Under supply of retirement living accommodation in the mid to upper market tiers and increase in life expectancy is driving strong re-sale and price growth in the retirement living market, according to real estate investment advisors JLL.
Analysis was undertaken by the firm into the performance of properties in the housing with care market, managed by members of the Associated Retirement Community Operators (ARCO) over the past 22 years. This form of housing comprises self-contained units with communal facilities and on-site care. It is the fastest growing form of housing in the retirement living sector.
The key finding is that this form of retirement living accommodation tends to follow UK house price growth. Since 1995 the compound growth rate for housing with care has been 6.0%, with an average price difference between sales of just over £41,000. JLL predicts that based on … Read More »
St David’s residential care home in Rhyl, North Wales, has been acquired by new owners in a seven figure funding deal supported by Allied Irish Bank (GB).
The home’s registered manager Ruth Waltho, along with her husband David, have acquired the 52-bed facility for an undisclosed sum.
Located in a seafront setting on East Parade in Rhyl, St David’s has 48 bedrooms, many of which have en-suite facilities. Three of the bedrooms are suitable for dual occupancy.
St David’s is the biggest care home in North Wales and employs 40 members of staff. The property was originally built in 1904 as a preparatory school for boys and has also previously been used as a convalescent home for Yorkshire miners. Following its acquisition, plans are now underway to improve and refurbish the care home, including the creation of two new bathrooms and a home … Read More »
Lanarkshire based Keane Premier Healthcare has agreed a £2.7m loan with Barclays, enabling the company to expand its portfolio with the acquisition of a third care home.
The funding package will also support the refurbishment of the former Greenlees home in Cambuslang which has been renamed Georgia Park. The 39-bed facility had been trading in administration but with the new management team and investment funding confirmed, residency has now grown by more than 50% to 36.
Keane Premier Healthcare has a strong track record of rejuvenating existing care home facilities, embarking on its first project in 2009: the transformation of an 18-bed care home in Dunvegan, Cambuslang, into a 24-room luxury facility by 2011. Following its success, the group committed to a similar project with Duncraggan care home in Burnside, Rutherglen in 2012, expanding the 18-bed setup to a capacity of 24 … Read More »
Caring Times, March 2017
Complex care provider Badby Park Group has acquired the South Park Care Centre in Darlington.
The acquisition, for an undisclosed sum, marks the next stage in the growth of the award-winning group, which also owns Badby Park in Daventry, Adderley Green Care Centre in Stoke and The Bridge Neurological Care Centre in nearby Middlesbrough.
The modern purpose built care home, which opened in 2008, will now undergo a substantial million-pound refurbishment to reduce the total number of bedrooms from 67 to 54, all fully en-suite. The renovation will provide enhanced space for accommodation, therapy, rehabilitation and leading edge care facilities.
The updated service will welcome the first of its new residents in the summer of 2017. Badby Park Group chief executive Paul Hill said the new service would work closely with local health and social care professionals to deliver the highest … Read More »
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NatWest Bank has warned that ESOS, a mandatory energy assessment scheme, will affect any care homes and home care operators if they meet the ESOS definition of a large undertaking. A large undertaking is any UK company that either employs 250 or more people, or has an annual turnover in excess of €50m euro (£38,937,777), and an annual balance sheet total in excess of €43m (£33,486,489).
Neil Garton, head of healthcare at NatWest, said: “Many care home businesses and home care operators may not have thought they qualified for the scheme, but they must include staff employed on a fixed term, part time or zero hours contract.”
Organisations that qualify for ESOS must carry out ESOS assessments every four years. These assessments are audits of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving … Read More »
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Knight Frank healthcare team has sold a portfolio consisting of 30 care homes on behalf of Meridian Healthcare Ltd to Formation Capital and HCPI, for more than £100m.
Meridian is the 32nd biggest UK care home operator by number of registered beds, totalling 1,500, and employs about 1,200 people. All of the homes in the portfolio are purpose built and all bedrooms are in single occupancy. The business was founded by Alan Firth in 2000 and the headquarters are based in Hyde, Manchester.
The portfolio will be operated by Dr Chai Patel, acting chief executive and founder of HC-One. Gleacher Shacklock advised Formation Capital.
Knight Frank head of healthcare Julian Evans said Meridian enjoyed a reputation for providing outstanding care.
“There was significant competitive tension for the portfolio both from domestic and international capital and this demonstrates increasing investor appetite for UK … Read More »
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Four Seasons Health Care group has reached agreement with its banks in respect of its £40m corporate credit facility, with the existing covenant under that facility replaced with a gross ‘super senior’ leverage covenant.
Four Seasons says the revised facility, which matures in three years (December 2017), provides sufficient headroom to enable the group to implement its medium term operational and strategic plans. Four Seasons chairman Ian Smith said the group had now restructured its operations into three businesses, each has its own chief executive and senior team in place and they had begun implementing their plans to develop the three businesses.
“I welcome this new affirmation of support from our banks which combined with the group’s ample liquidity, means we are well placed to drive our strategy in the coming years,” said Mr Smith.
The businesses created as a result … Read More »
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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 … Read More »