Investment platform Downing Crowd is launching a new £3m bond for care home developer, Magnus Care Group, which is also supported by experienced care home operator Care Concern.
Downing Crowd is part of experienced London-based investment manager Downing LLP, which has been investing in a wide range of UK business sectors, including healthcare and renewable energy, since 1986.
Having recently acquired Bothwell Castle, a newly developed care home in an affluent suburb of Glasgow, Magnus Care Group plans to work with Care Concern to acquire further resident care homes to build out its portfolio and two additional locations are already in the pipeline. Throughout this process, Magnus Care Group will focus on refurbishing properties, enhancing standards of care and increasing bed occupancy where appropriate.
The Magnus Care Group bond will allow investors to earn a fixed return of 7% p.a., plus the potential for added equity upside. The bond is also asset-backed, which means that Downing will have first-charge security over the bricks and mortar of Magnus Care Group’s care homes and other assets.
The team behind Magnus Care Group previously developed a portfolio of care home with Downing managed funds and had a successful exit in Spring 2018, achieving an attractive rate of return for investors.
Julia Groves, Head of Downing Crowd and Partner at Downing LLP, said: “The Downing team has honed real expertise in the care sector, having invested in our first care home back in 1998. We have developed and invested in care homes across the UK and are delighted to add to our portfolio with Magnus Care Group. Our success in this area of the market is also demonstrated by our recent exit from five care home projects in March 2018.
“Our constant focus is always on finding high quality residencies and care facilities in the sector, with the aim of ensuring the best possible outcome for care home residents, staff and our investors.”