Elevation invests in elderly care properties

  • 13th January 2025

Elevation Advisors LLP has announced an update on transactions completed in the second half of 2024 by Elevation Healthcare Properties to acquire and develop elderly care properties in the UK.

Capital Raising

EHP raised £257m of equity and £74m debt capital during 2024. Transactions in the second half of the year included:

  • Equity capital: Following the last equity raise of £157m of equity during Q1 2024, EHP raised an additional £100m in Q3 2024. This equity is being deployed to acquire or develop on a pre-let forward-funded basis prime elderly care real estate in the UK
  • Debt capital: An additional £35.5m green loan bank facility was raised with AIB. 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

Transactions

During 2024, EHP closed transactions amounting to £355m (of which £94m closed in the second half of the year). During the last six months of 2024, EHP added three new operator relationships to the portfolio (13 operators in total). Transactions included:

  • Acquired the land and agreed forward-funding to support the development of two care homes in Pagham and Gravesend with Simply Care as developer and Simply Develop as builder. Once completed, the home will be let on a long-term lease with RPI-linked escalator with cap and collar to Simply’s Morar Living brand, a new operator relationship for EHP in 2024
  • Acquired the land and agreed forward-funding to support the development of a high specification 78-bed care home in Havant with Anavo Group as developer and operator. Once completed in late 2026, the home will be let on a long-term lease with RPI-linked escalator with cap and collar to Anavo, a new operator relationship for EHP
  • Completed the sale and leaseback of a 69-bed care home in St Neots, Cambridgeshire. Henbrook House is let to Connaught Care, another new operator relationship for EHP, on a long-term lease with RPI-linked escalator with cap and collar
  • Completed the acquisition of land and agreed forward-funding to support the development of three new care homes in York, Bridlington, and New Waltham with Yorkare Homes, comprising 190 beds. Once completed, the homes will be let on a long-term lease with RPI-linked escalator with cap and collar to Yorkare, a new operator relationship in 2024 for EHP

An artist’s impression of the proposed care home in York

ESG

EHP has a robust and comprehensive ESG strategy in place to deliver targeted environmental sustainability and positive social outcomes. Initiatives delivered during 2024 include:

  • Elevation submitted its second annual submission to the Global Real Estate Sustainability Benchmark for EHP in 2024, reporting on the 2023 calendar year. EHP saw an overall increase in scoring of 17% achieving a three-star rating (compared to one star in 2023)
  • Elevation has been working with sustainability consultant, Envision, to achieve its target of 100% green building certification across the EHP portfolio. In H2 2025 a further 19 EHP assets achieved BREEAM In-Use certification, bringing the total coverage to 92%
  • Working with sustainability consultant, Inhabit, Elevation has identified a net zero strategy aligned with the Science Based Targets Initiative for Financial Institutions with an interim target to reduce carbon emissions for the majority of Elevation’s AUM (including the full EHP portfolio) by approximately 65% per square meter by 2033 compared to 2023
  • Raised a £35.5m green loan with AIB in H2 2024 (as referenced above), following a £153m Sustainability Linked Loan raised with HSBC in H1 2024

James Giles, investment director at Elevation, said: “EHP seeks to address the structural undersupply of elderly care beds in the UK and delivers modern, high-quality care communities, designed to meet increasing environmental standards.

“We are excited to confirm these latest transactions, which demonstrate the stable and resilient growth of EHP and its successful alignment with the needs of investors and stakeholders.

“We are delighted with the growth and achievements of EHP in 2024 and look forward to working towards our 2025 ambitions.”

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