HC-One’s owners, Safanad and Court Cavendish, have invested a significant amount of new capital into the care provider, with Safanad’s investment allowing it to take majority control.
HC-One has also agreed a £540 million refinancing deal covering all of its existing debt facilities with Welltower, a global investor in healthcare and wellness real estate. As part of this refinancing deal, HC-One is also reducing its debt by £66 million.
HC-One’s chief executive, James Tugendhat, said: “We are pleased that Welltower, with its expertise and commitment to the sector, is supporting HC-One. We are confident we can improve and develop HC-One to be true to our purpose of serving at the heart of each of our communities and being the first choice for families, colleagues and commissioners.
“The continued support of our owners, and all of our stakeholders, gives us the confidence to weather any further challenges from the pandemic and to reinforce our strategy of better meeting the evolving, and more complex care needs of the communities we serve.”
It is understood that the healthcare team at Knight Frank advised on the transaction.
In a release explaining the deal, HC-One’s reiterated its earlier commitment to refurbishing more than 200 of its homes, and a new build programme of purpose-built care homes, with homes in Bingham and Telford due to open this summer. It didn’t mention the 52 homes it is selling off or the four it intends to close.
The company also announced it is giving its workers a pay increase of at least 3%. Staff who are paid at National Living Wage rates will now be paid a minimum hourly rate of £9.
Tugendhat said: “We are delighted that our strong financial health is supporting us to invest in our homes, and reward our colleagues as we strive to be the kind care company.”
Date published: April 29, 2021