Northampton based Avery Healthcare Group continues to strengthen its position as a leading quality provider, operating 50 assisted living and care facilities around England located mainly in Greater London, the home counties, and the Midlands.
In July 2013, Healthcare REIT Inc. of Toledo, U.S. (”HCN”) acquired a total of 14 care homes operated by Avery, 13 operational units followed shortly afterwards by a new turnkey development, in an initial transaction forming the basis of a commercial relationship that has continued to develop.
HCN selected to partner with Avery because of the outstanding quality of their portfolio, and importantly the high private pay content (75%), aligned with HCN’s strategy of owning high quality, purpose built properties operated by best-in-class providers.
HCN is the largest healthcare focused real estate investment trust in the U.S., and is listed on the NYSE with a market capitalisation of circa $40 billion.
The partnership between Avery and HCN has flourished, and on 7th July 2015 HCN acquired a 9.9% equity stake in the Avery, and provided a substantial working capital commitment to support further senior living and retirement living developments in strong UK markets. Avery has assisted living facilities under development in Aldridge and Northampton, together with care home developments in Derby, Bristol, Clevedon, Bracknell, Stafford and Greater London.
Managing Director John Strowbridge commented that this latest investment by HCN: “Cements an already strong relationship, and is a platform for further development in the UK with the backing of the longest established and most respected healthcare REIT in the U.S. This initial 9.9% stake is the first step in a working partnership, that also enables HCN to make further investments in Avery over the coming years.”
John Strowbridge stated further: “In the last two years Avery has benefited massively from the support and commitment of HCN to grow our business. The investment is a vote of confidence in the Avery management team, and also the investment prospects in England, where the demographic trends are strong, and there is a clear need for high quality facilities providing long-term and post-acute care for older people. “
Keith Crockett, Vice President of Investments UK for HCN said: “We identified Avery at an early stage of our expansion into the UK, and the closer ties that this new investment endorses is further confirmation of our commitment to acquiring quality facilities to add to the Avery portfolio”.