Essential reading for the healthcare business
Remember me:
Skip Navigation LinksHealthInvestor article
BMI properties sized up by hedge funds

General Healthcare Group’s hospitals, which are leased to BMI Healthcare, are poised to be taken over by a consortium of hedge funds, according to The Sunday Times.

35 facilities are understood to have been handed over to hedge funds led by KKR, DE Shaw and Centerbridge, already. German bank FMS Wertmanagment is also believed to be involved.

GHG is split into two companies with its operating arm, BMI Healthcare, the tenant of the hospitals owned by GHG’s property arm. The property arm has a £1.5 billion debt pile that dates from 2006 when GHG’s owners Netcare, Apax Partners and London & Regional acquired the business and split it into an ‘opco-propco’ model.

It is believed that the funds will inject £175 million in return for ownership of the hospitals, while the debt’s interest-rate swap will be partially removed and replaced with new debt.

The consortium will then consider whether to list GHG on the stock market as a REIT or sell it to an American investor.

The original maturity date for GHG’s debt was October 2013, although this has been extended several times.

The hedge funds started buying into the debt a few years earlier and a source told The Sunday Times that this new agreement was a “milestone”.

“It’s taken us two years to get here and it’s been one of the most complicated restructurings we’ve been involved in,” the source said.

They added: “The economy is turning around and that has a positive impact on healthcare spending, and GHG has a new chief executive who comes with a stellar reputation.”

Former Ramsay Health Care chief executive Jill Watts (pictured) has taken on the role of chief executive of GHG, replacing Stephen Collier.

Advisors including Gleacher Shacklock, Lazard and Brookland Partners are understood to be involved in the deal.

Related articles:

Posted on: 26/11/2014

Latest news stories

Care provider Regard Group has appointed Tracy Kite (pictured) as director of learning and leadership development.
The McAvoy Group has been awarded a £15 million contract for the offsite construction of a new wing at Northumbria Specialist Emergency Care Hospital, Cramlington.
Independent investment manager Albion Capital has invested £5 million in The Evewell, a fully-integrated medical centre specialising in reproductive and gynaecological health.
Investment banking firm Jefferies has published its inaugural ‘Jefferies Healthcare Temperature Check’ – presenting the views of nearly 500 senior leaders within the healthcare sector.
In an interview with HSJ, health secretary Matt Hancock has said that the government is “not going to hand [integrated care contracts] to the big private healthcare companies”.


HealthInvestor blog
The Care Quality Commission is finding its voice as a regulator, but is anyone listening?

Click here to view the HealthInvestor blog

An interest in people rather than machines led to Andrew Lennox dedicating his career to improving patient outcomes
The Care Quality Commission’s latest summary of the state of health and social care points to an unfair and fragmented system
Echo co-founder Stephen Bourke tells Jack Carter how his app is simplifying the repeat prescription process
With the care village market still very much in its infancy in the UK, perhaps two of the biggest questions facing every care village developer, investor and operator are how much can we sell our care village apartments for, and will they hold their value? Carterwood director Ben Hartley provides some answers
Vet sector consolidation means the risk of CMA intervention is increasing, say Andrew Taylor and Nick Warren, partners at Aldwych Partners

Click here to search all feature articles

Deal in the spotlight

Elysium Healthcare's acquisition of LCP takes the group portfolio to more than 60 homes in just two years
Read more

Christie + Co

my images


Vet sector consolidation means the risk of CMA intervention is increasing, say Andrew Taylor and Nick Warren, partners at Aldwych Partners
Read more