LONDON--(BUSINESS WIRE)--NHP has today announced that Formation Capital in partnership with Safanad, a global investment firm, and Court Cavendish, the healthcare turnaround specialist and management team at HC-One, have signed a binding commitment to acquire NHP. The deal is expected to complete in November 2014.
NHP, which comprises 275 properties, including the UK’s third largest care provider HC-One, will be acquired for £477m. This brings total recoveries to creditors to £507m over the last 5 years as NHP has sought to realise value for its lenders through the sales of assets.
Since 1999, Formation Capital and its investors have invested over $5.5 billion of capital across the continuum of care in the senior housing sector. As part of this history, Safanad and Formation Capital have acquired over $3 billion in senior care assets since its strategic partnership in 2009. Safanad is a global investment firm that invests in real estate, private equity and public markets. The firm seeks to identify investment opportunities primarily within the healthcare, education, financial services and retail sectors.
The new partnership has been created with a view to consolidating HC-One’s rise, which now sees it as a provider with above average levels of occupancy. The new organisation is planning to acquire further homes and diversify the care provided to include retirement villages, residential, nursing and home care – so becoming an integrated health and social care provider working in collaboration with public sector commissioners to deliver high quality and cost effective services.
The sale represents a fantastic development for HC-One’s residents, staff and relatives as the new owners plan to invest further in ensuring HC-One continues on its journey to provide the kindest possible care.
Steve Fishman, President and Co-Chairman of Formation Capital, said:
“HC-One has come a long way since Court Cavendish stepped in to rebuild the operations. Dr Chai Patel, his management team and staff have worked exceptionally hard to bring a new focus in the organisation around care for residents. The transaction brings an end to the uncertainty HC-One has faced, enables significant new investment and consequently allows the HC-One team to better serve residents and their families. Our investors and partners bring long term capital and significant experience of investing in this sector. Our goal is to enable the continued development of the estate, and development of the HC-One team to the benefit of residents and broader stakeholders.”
Kamal Bahamdan, Founder and Chief Executive Officer of Safanad, said:
"We are pleased to have expanded on our successful US partnership with Formation Capital by jointly establishing a healthcare platform in the UK market, and especially encouraged to have equity partner Dr. Chai Patel and his team at Court Cavendish as part of our strategic vision to further build on this opportunity.”
Dr Chai Patel, Chairman of Court Cavendish and HC-One, said:
“We are absolutely delighted to have formed this new partnership with two organisations that have such an outstanding track record in care. For our residents, relatives and our staff, this is a fantastic step in ensuring HC-One continues on our journey to provide the kindest possible care.”
Notes to Editors
About Formation Capital
- Formation Capital is a leading private investment management firm focused on equity and debt healthcare investment opportunities. Since 1999, Formation Capital and its investors have invested over $5.5 billion of capital in seniors housing and care, post-acute services and health care real estate. For more information regarding Formation Capital, visit www.formationcapital.com.
About Safanad Limited
- Safanad is a global principal investment firm that invests in real estate, private equity and public markets. As principal investors, Safanad preserves and grows wealth through carefully selected investments with aligned industry partners. With offices in New York, Dubai, London and Geneva, the firm seeks to identify global investment opportunities poised to deliver consistently attractive returns, where the firm's capital and investment expertise support value creation. Safanad’s investment focus is primarily within the healthcare, education, financial services and retail sectors. The firm's investment expertise is enhanced by its relationship with the Bahamdan Group, Safanad’s founding shareholder, which has over 60 years of experience in global principal investing and building strategic partnerships. For more information visit www.safanad.com.
About Court Cavendish
- Court Cavendish Limited was re-established by Dr Chai Patel to deliver operational and financial turnarounds of multi-site Social Care and Health Care organisations. Our team has a deep knowledge and experience of working with Residents and Service Users and their families, Local Authorities, Health Teams, Regulators and Central Government.
- Court Cavendish is led by Dr Chai Patel (Chairman), David Spruzen (CEO) and Bob Lewis (Director of Local Authority Relations). Court Cavendish was originally founded by Dr Chai Patel in 1988 and floated on the London Stock Exchange in 1993. It merged with Takare in 1996 to become CareFirst, the UK’s largest care home company at the time. CareFirst was acquired by BUPA in 1998.
- The NHP Group ("NHP") is a property company which owns 275 properties, located throughout the UK.
- The current board of directors of NHP are Jeremy Jensen, the Chief Restructuring Officer ('CRO') appointed on 19 December 2008, and Paul Thompson, the non-executive director appointed on 6 November 2009; both of whom are partners in The Aaronite Partnership LLP a specialist turnaround advisory firm.
- NHP Management Limited manages the property portfolio and administers the 39 group companies. It also manages the compliance obligations and reporting to the lenders, accounting and tax, collection of rents, insurance, inspections and asset management/liaison with its tenants.
- NHP is one of the few property investment groups in the UK specialising in the ownership of freehold or long leasehold interests in care homes, the majority of which are leased to care home operators on long-term leases.
- HC-One stands for ‘Health’ and ‘Care’ and symbolises the focus on the “one” – you, the resident, are the one that matters; you, the staff member, are the one that can make a difference.
- HC-One is founded on the principles of involvement, accountability and partnership and will seek to continue to build a new kind of relationship within the company between the staff, residents, relatives and the wider communities within which we operate.
- HC-One Senior Management team includes senior health and social care professionals and directors with many years of experience in managing successful care homes.
- As part of HC-One’s focus on quality, the company has put in place multiple award winning and sector leading learning and development programmes.