Essential reading for the healthcare business
 
 
Remember me:
Skip Navigation LinksHealthInvestor article
Four Seasons appoints advisors to sell assets worth £60m

Troubled care home business Four Seasons Health Care has appointed Christie+Co and Knight Frank to sell care homes assets worth £60 million in total according to Property Week.

Four Seasons has appointed Christie+Co to sell 14 individual properties as going concerns, worth up to £30 million collectively. These are set to be sold before the end of the year despite some of the homes being located in lower-value areas, reported Property Week.

The beleaguered business has separately appointed Knight Frank to sell a portfolio of homes that are currently run by third party operators, also worth an estimated £30 million.

The news comes as credit ratings agency Standard & Poor’s said in early November that Elli Investments, the umbrella company for Four Seasons’ bonds, risked running out of money in the next six months.

The ratings agency said that in its view “the group's currently available liquidity will likely be consumed by the first semester of 2016 from annual cash interest and rent obligations totalling around £110 million, as well as capital expenditure (capex) in relation to the group's ongoing segmentation and refurbishments across its homes.”

Standard & Poor’s added that the firm would have less than £20 million in cash by the end of this year.

In October, the care home giant brought in Blackstone spin-off PJT Partners and magic circle law firm Allen & Overy to review its financial structure.

Elli Investments told noteholders at the time that while the group had "sufficient medium-term financial flexibility" it would "conduct a review of its current financing to further enhance that flexibility".

Ben Taberner, chief financial officer at Four Seasons, told bondholders that a financial review would be carried out with "all options" considered.

The company is currently struggling under the weight of over £500 million worth of debt with an annual interest bill of £50 million.

The company has attributed its financial pressures on constrained local authority fees and a sector-wide nursing shortage meaning an increase in the use of pricey agency staff.

Private equity firm Terra Firma bought Four Seasons for £825 million in 2012.

The firm is split into three divisions: brighterkind which has approximately 80 private pay-focused care homes; Four Seasons which has around 350 homes; and The Huntercombe Group which runs around 40 specialist mental health facilities.


Related articles:

Posted on: 06/11/2015

Latest news stories

21/05/2019
Healthcare real estate investment trust Assura has reported an increase in profits and revenues as a result of portfolio growth in its full-year results for the 12 months ended 31 March 2019.
21/05/2019
UK skincare specialist group sk:n has acquired Destination Skin, a chain of 16 aesthetic skincare clinics, with ambitious plans to open new clinics under both brands in the coming months.
21/05/2019
There have been 77 transactions in the global IVF and fertility market since 2009, with M&A activity peaking in 2018, finds new analysis.
20/05/2019
Totally, a provider of out-of-hospital services, is in the advanced stages of acquiring Greenbrook Healthcare, a primary care organisation which operates across London.
16/05/2019
Swanton Care & Community has acquired specialist adult residential and supported living providers Values in Care and GRS Care.


Civica


HealthInvestor blog
As the self-pay care home market booms, the state-funded sector is under increasing pressure to survive. The government must act to ensure a dignified and secure future for all our older citizens

Click here to view the HealthInvestor blog


An electronics engineer, applying technology to break down the limits of care, improve patient outcomes and change lives for the better… Also, named on the Sunday Times Maserati 100, its annual list of entrepreneurs
James Allen joined the National Care Group as chief executive in April, but new to the post doesn’t mean new to the sector. With a fresh pair of eyes, he discusses provision and trends in the adult social care sector with Marie Cahalane
Horizon chief executive Paul Callander talks to Marie Cahalane about children’s services and analyses funding and provision – as we eagerly await the social care Green Paper
The UK medicinal cannabis sector is becoming mainstream as a result of changes to the law, a growing body of scientific research and evolving social attitudes. While not without its challenges and risks, it already offers a range of opportunities for investors that are likely to increase over time. Catherine Gooderham asks, where do the investment opportunities lie?
The European care market remains active, the result of growing demand, well-entrenched multiples, and the potential for growth through pan-European expansion. Marie Cahalane considers market opportunities and examines the prospects for UK operators

Click here to search all feature articles



Something new...

We've entered the era of the app - there seems to be one for everything and health is no different. Gus Booth-Clibborn, co-founder and chief executive of Tomo, talks mental health and 'appiness with Marie Cahalane
Read more


Christie + Co

my images



Care homes
While the self-pay care and nursing home market is seeing record levels of investment, the UK state-pay system is on its knees with operators struggling to survive as local government payments fall well below the true cost of care. Rob Munro reports on the crisis engulfing a market worth nearly £16 billion a year
Read more