The portfolio, formerly known as the Loyd’s Portfolio, comprises 61 care homes (54 trading and seven closed), which was previously leased to FSHC. Elevation Advisors carried out a strategic review of the portfolio, comprising 39 'core' homes (1,700 purpose-built beds, of which 75% are located in England and 25% in Northern Ireland), and 21 ‘non-core’ homes.
The parties transitioned the operations underlying the core homes to new operators on new 35-year full repairing and insuring investment-grade leases. The new operators were selected based on their geographic and operational synergies, their ability to integrate the homes, and their capability in providing continuity of care. In addition, LDC committed to substantial capex investment across the portfolio for refurbishments and extensions.
As well as representing LDC Care Homes and Elevation, Pinsent Masons also acted for Grant Thornton (in its capacity as administrators of relevant FSHC tenants) in a coordinated multi-party process with the incoming operators and the CQC regulator, to ensure a smooth transition of the homes and their residents.
All the core homes and the majority of the non-core homes have now successfully transitioned.
The Pinsent Masons team was led by corporate real estate partner Robert Moir and property partner Tom Eastwood advising LDC Care Homes and Elevation, working with restructuring partner Steve Cottee who acted for Grant Thornton as administrators.
Commenting on the process, Robert Moir said:
"The Healthcare team at Pinsent Masons is delighted to have acted on this significant series of transactions for the sector, involving many parties in a coordinated process. Paramount was the smooth transition of the homes to the new operators, especially in these challenging times. Our integrated corporate, property and restructuring capabilities within the Healthcare and Senior Living context was a key component in delivering that."
Hunter Drew, partner at Elevation said: “We thank the team at Pinsent Masons for their support and hard work on the migration of these homes to new operators, which was a particularly complex task against the backdrop of the Coronavirus pandemic.”