United Kingdom ยท Care homes
An established care home operator agreed to buy three homes from a retiring owner but needed acquisition debt structured quickly to keep the seller committed to the deal.
The seller had received one earlier approach that fell through during a slow financing process, and made clear that a second failed process would end the sale.
The three homes had strong occupancy but mixed profitability, which meant a lender relying purely on trading earnings would have valued the group conservatively.
We built the case on a blend of trading performance and the underlying property value, since two of the three homes sat on freehold sites worth more than their earnings alone would justify.
A healthcare specialist lender and one property backed lender were approached together, allowing us to compare a cash flow based offer against an asset backed one and negotiate the seller's timeline into both processes.
A GBP 6m acquisition facility was agreed, secured on the freehold property with headroom against the group's combined occupancy performance.
Completion took place within the seller's revised deadline, and the enlarged group has since stabilised occupancy across all three homes.
Details are anonymised. Figures are rounded and identifying information is removed or altered to protect client confidentiality. Past transactions are not a guarantee of future outcomes.
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