Torwood Abbey Care Home

Elevation Healthcare Properties (EHP), a healthcare real estate fund advised by Elevation Advisors LLP, has raised £348m of equity and debt capital since the beginning of 2024, which it will be using to acquire and develop elderly care properties in the UK.

Following the last equity raise of £330m in Q4 of 2022, EHP raised an additional £157m of equity during Q1 of this year.

EHP also refinanced an existing debt facility of £153m for a further five-year term with a leading high street bank.

The term loan was converted into a Sustainability Linked Loan alongside Sustainability Linked Hedging, demonstrating EHP’s commitment to sustainability and advancing the existing ESG strategy.

The Sustainability Linked Loan will assess the progression of EHP against:

• The annual Global Real Estate Sustainability Benchmark (“GRESB”) reporting which assesses a breadth of ESG and sustainability credentials
• The progression of EHP’s asset level certification against BREEAM in-Use
• A commitment to fundraising and volunteering for the selected organisations

EHP raised an additional £38m bank facility from Virgin Money, as part of the Berkley Care transaction detailed below.

The facility was rolled over as part of the transaction with over four-years left on the term.

All of the debt raised is fully hedged in line with EHP’s interest rate risk policy through a combination of swaps, caps and floors.

Fernhill House, one of 11 properties acquired from Clariane S.E

Transactions:

• Acquired from Clariane S.E, 11 properties, simultaneously leased back to Berkley Care Group. Concurrently, Berkley Care’s existing leadership team agreed to acquire the operations of Berkley Care operations from Clariane. The total consideration to Clariane was £207m. This transaction cements and expands EHP’s existing relationship with Berkley Care, an operator of 12 modern award-winning care homes across England comprising 805 high-quality beds.
• Acquired a 60-bed, modern purpose-built care home in Ormskirk Lancashire, with a simultaneous lease to operator, Torwood.  Additionally, EHP has completed the acquisition of land and a forward-funding agreement to support the development of a state-of-the-art, 61-bed care home in Huddersfield to be developed and subsequently let to Torwood.  Torwood is a leading care operator with two operating care homes and more than five developments under construction, led by experienced management team in partnership with specialist contractor, Torsion.

James Giles, investment director at Elevation, said: “We are excited to announce these transactions, demonstrating the stable and resilient growth of our well-established EHP vehicle.

“EHP seeks to address the structural undersupply of high-quality elderly care beds in the UK to deliver positive social impact through the provision of modern, high-quality care environments.

“These facilities are a vital part of the healthcare infrastructure fabric of the country and are designed to meet increasing environmental standards.

“These transactions are testament to the successful alignment of Elevation with its investors and stakeholders, supporting both sustainable returns and the provision of high-quality elderly care.

“Focused on the long-term, we are committed to delivering strong outcomes for our communities and are working towards completing our 2024 ambitions.”