HC-One puts care homes up for sale

Britain’s third largest care home operator, HC-One, is reported to have put around 70 homes up for sale for around £300 million.

Property Week magazine reports that HC-One’s landlords – Court Cavendish, Formation Capital and Safanad – have appointed agents to sell the homes in various  locations across the country. The assets make up about a quarter of HC-One’s 275-home portfolio.

The move is believed to be part of a long-term finance restructure for the joint venture owners, who will use the proceeds to pay down a debt of around £250 million. The homes will be sold on a sale-and-leaseback basis.

HC-One was formed in 2011 to take over operation of the third of Southern Cross homes that were owned by property investor NHP after the operator – then the largest in the UK – collapsed under £50 million of debt.

In 2014, NHP was acquired by Court Cavendish, the healthcare turnaround specialist, which already ran the management operation at HC-One, along with investors Formation Capital and Safanad for a reported £477 million. This deal included ownership of the 275 properties operated by HC-One.

The new owners pumped £100m into a refurbishment programme across the portfolio earlier this year, which saw some of the care homes get hair and beauty salons, games rooms and reminiscence rooms, which recreate a different era for the benefit of older residents.

The care sector is feeling the pinch as the new £7.20 an hour national living wage comes into force, increasing the salary bill for many providers. Last August, HC-One was one of five top care home operators to write to Chancellor George Osborne, warning that a major care home provider was likely to fail within the following one to two years because of the changes.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

STAY UPDATED!
Thank you for visiting CHMonline.co.uk, the website for the leading magazine for care home managers, operators and directors. If you would like to receive the editor's regular newsletters via email please subscribe here.
Are you a care home staff member or operator?
Terms:
Care Home Management (S&A Publishing) may use the information you provide on this form to get in touch with you with relevant industry news and promotions. You can change your mind at any time by clicking the unsubscribe link in the footer of any email you receive from us, or by contacting us. We will treat your information with respect.

For more information please view our privacy policy.
By submitting this form you agree to the terms.
SUBSCRIBE