Development-led care home operator, New Care Projects, is pleased to announce it has concluded the sale of part of its portfolio of homes for an undisclosed sum to HCP, a specialist California-based health care investment REIT.
The operation of the two homes, Allingham House Care Centre in Timperley and Manorhey Care Centre in Urmston, has been taken over by Maria Mallaband Care Group with immediate effect.
The transaction offered New Care the opportunity to dispose of the mature trading assets, which had become a prime target for corporate acquisition not only due to their new build nature, but also as a result of their location in the affluent Borough of Trafford. In addition, their bias towards private fee pay, excellent clinical reputation and consistently high levels of occupancy at above 96%, heightened the appetite for the homes.
The multi-million pound deal allows New Care to exit with surplus funds to fuel their ambitious expansion plans; designing, constructing and operating ‘new generation’ purpose-built care homes across the UK.
New Care provides a unique concept in the care sector founded by ‘Builder and Nurse’ team, Chris McGoff and Dylan Southern, following controlling interest investment by the McGoff brothers and a minority group of serial equity investors.
Commenting on the sale, New Care Projects’ CEO, Chris McGoff, says: “We are very pleased to see this deal conclude, as not only did we take comfort in the fact that our excellent reputation and legacy was being transferred to suitable custodians, but the it also acts as a catalyst for the future growth of the New Care platform which we hope will become synonymous with raising standards in elderly health care provision.”
Dylan Southern, New Care Project’s co-founding Board Member, acknowledges: “The success of New Care in our view was always assured, as the contrasting skill sets that we have pulled together are vital at a time when the sector has no alternative but to deliver purpose built care facilities to cope with numerous challenges, leaving many smaller and converted stock opportunities obsolete.
“That said the level and nature of the success has taken us all by surprise. The performance of the homes, both of which were consistently operating at occupancy levels in excess of 96%, together with the added value and efficiency that we have managed to drive from combining development and operating skill sets under one roof, has resulted in New Care securing a record deal.
“New build settings are a must if we are serious about raising health and welfare standards; we can’t put up with inefficient and unsustainable environments contracting with public bodies and wasting ever tightening budgets. Society is also becoming ever more discerning and the New Care brand sets out to capture a market place that is experiencing a flight to quality and demanding better clinical provision.”
What sets New Care apart from its competitors and attributing to its achievements are the contrasting skill sets available; property and construction teamed with clinical excellence, with the ultimate aim of being able to provide an efficient one stop shop delivery vehicle for new generation care facilities.
Chris concludes: “Historically these skill sets have been disconnected but we saw a ‘them-and-us’ approach to new build delivery. For development-led operators, this breeds a reliance on a raft of third party consultancy input from planning to cost practice expertise and when an arms-length main contractor is added to the mix, the risk profile of the development process is exponentially increased. This is not just for the operator, but also lending institution and investors.
“Our unique approach de-risks the whole process for all concerned. In addition, the lack of stakeholder alignment also creates profit leakage from the delivery process and when leaner times come, there is less head room to weather any financial storms. In doing what we do we are seeking to change the perception with funders that development lending can be an ethical process and not a dirty word.”
In reaching a conclusion of the sale of the two homes, New Care Projects was advised by Manchester-based law firm Field Fisher and Grant Thornton.
New Care Projects has retained full ownership of their third and recently completed care home, The Grand, in West Bridgford in Nottingham.