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Patron Capital sells Gracewell Healthcare for £153m

Investment firm Patron Capital has sold portfolio company Gracewell Healthcare for £153 million to Sunrise Senior Living and Health Care REIT.

Health Care REIT (HCN), which owns the properties operated by Sunrise Senior Living either outright or as joint ventures, has acquired the 11 care home facilities run by Gracewell Healthcare. Meanwhile, Sunrise Senior Living has bought the Gracewell Healthcare management company.

Furthermore, Patron Capital will back its partners, and Gracewell’s founders, Tim Street and Daniel Kay on expanding the Gracewell business further with HCN and Sunrise Senior Living.

The agreement includes the rennovation of one community, completing 11 existing developments and the management of the pipeline of future projects, which aims to have five new properties opened per year.

Patron Capital managing director Keith Breslauer (pictured) said: “This transaction demonstrates both our development and operating expertise in creating a leading healthcare company. It is an industry we believe in and are committed to; Patron’s strategy is to invest a further £200 million in this asset class, in the care homes business, the healthcare industry in general, as well as our specialty care business, Badby Park.

HCN chief executive Tom DeRosa added: “This new partnership brings together the development expertise of the Gracewell team, the operating excellence of Sunrise, and the strategic capital of HCN. We are pleased to expand our relationship with our largest operating partner by building on our leading position in the highly attractive Greater London and southern England markets.”

Patron first invested in Gracewell Healthcare in 2010. The care home group consists of 767 units based in southern England aimed at the luxury end of the market.

HCN acquired Sunrise Senior Living’s real estate, a 20% stake in the management company and the majority stake in a number of the group’s joint venture deals in a $4.3 billion deal (£2.5 billion) in 2013.

Earlier this year the REIT increased its stake in the management company to 24%, while its partner, Revera acquired the remaining interest in the management company.

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Posted on: 14/08/2014

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