Impact Healthcare invests in 12 care home portfolio

Care home investor Impact Healthcare REIT has backed the acquisition of 12 sites in Fife, Scotland in a deal worth up to £40 million. The homes will be operated by care home operator Holmes Care Group, an existing group tenant.

The properties, which together have 480 beds, were previously operated by Kirkcaldy-based Kingdom Homes whose owners are retiring from the industry.

The deal will see the Holmes Care Group more than double its portfolio. Following the transaction, the group will operate 34 Scottish sites and one England-based home. Holmes Care Group employs around 1,650 staff and supports 1,150 beds.

Impact Healthcare REIT said that the initial consideration is £37.5 million with a potential deferred payment of up to £2.5 million subject to the future performance of the care homes.

“The investment has been made initially by way of a loan to Holmes Care Group which will allow it to complete the acquisition of Kingdom Homes immediately, ” the REIT says in a press release.

“The structure creates a number of benefits for all stakeholders, including enabling Holmes Care Group to take immediate operational control of the homes, thereby avoiding a potentially lengthy transition period while regulatory approvals are sought to register the operation of the homes in new legal entities, as well as other financial and operational efficiencies.”

Sharifa Lakhani, chief executive at Holmes Care Group said: “We are delighted that Kingdom Homes have joined the Holmes Care Group family. Kingdom Homes and Holmes Care Group share a commitment to delivering the best standards of care possible, making them a perfect fit for us. We’re very much looking forward to welcoming their wonderful staff to our team. Combined, we will continue to make a real difference to the lives of our residents, their loved ones and the communities we serve.”

Dr Matthew Hansard, finance director at Holmes Care Group added: “The acquisition of Kingdom Homes is an exciting moment for Holmes Care Group; more than doubling the size of the group and allowing our excellent care team to deliver high quality care and support to even more communities around Scotland. Kingdom Homes is a well established provider of care, that shares Holmes Care Group’s family-run ethos, and so is an excellent addition to the family.”

DLA Piper, Bevan Britten and Deloitte advised Holmes Care Group. Christie & Co advised Kingdom Homes.

The deal takes Impact Healthcare’s relationship with Holmes Care Group to 21 care homes in Scotland, with 1,129 beds. In a separate deal, the group added to its portfolio three sites — the Springhill Nursing care home in Kilmarnock, Scotland, for £3.25 million and a portfolio of two care homes in Northern Ireland leased to healthcare provider Electus Healthcare for £11.02 million

Date published: December 24, 2021

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