CareTech acquired 28 of freehold assets from The Quercus Healthcare Property Partnership for a cash consideration of £29.5 million. In addition, the company acquired a property in Plymouth from Roborough Properties for £6.5 million.
The properties are currently occupied leasehold by CareTech, and the acquisition will save the group substantial costs in rental charges over the lifetime of the historic leases.
The Pinsent Masons team advising on the deal was led by banking partner Vanessa Heap assisted by Anaïs Spacey, Kate Hardwidge (Banking) and Tom Eastwood (Property).
Farouq Sheikh, CareTech’s Executive Chairman, said:
“The opportunity to acquire these 29 properties at this price is compelling. The immediate benefit to the Group of replacing a rent cost of £4.4m per annum with interest costs of £1.6m will be immediately earnings enhancing. Furthermore, we now have much greater flexibility to reconfigure and upgrade the properties in line with our strategy for enhancing fee rates whilst offering the highest quality of care.”
Commenting on the deal banking partner, Vanessa Heap, said: "We are very pleased to have advised CareTech on both the acquisition transaction and, simultaneously, on refinancing its bank Facilities to fund the acquisition. CareTech is a long-standing client of the Firm and we are delighted to be able to assist CareTech with this important transaction."