Rowanbrook Care Home, Walsall, is included in the sale

LDC Care Homes has completed the sale of 32 care homes comprising approximately 1,500 beds across the UK to Franklin Real Asset Advisors, on behalf of the Franklin Templeton Social Infrastructure Strategy.

The portfolio of assets, advised by Elevation Advisors LLP for the past five years, was previously leased to Four Seasons Health Care.

Elevation was engaged by LDC’s investors in 2020 to advise on the transition of the operating assets from FSHC to six replacement operators on new 35-year FRI leases with institutional terms.

Elevation has overseen the investment through to sale.

Achievements for the investment include:

• The modernisation of leases including full reporting obligations, enhanced downside protections, and green lease provisions
• The raising of debt financing on the portfolio (which was previously unlevered) from a high street bank
• The investment of approximately £6m of capex including targeted ESG enhancements, asset modernisation, and repositioning, including increased bed capacity.

Eamonn Meadows, investment director at Elevation, said: “Fulfilling the market need for high-quality care home beds in sustainable real estate squarely aligns with Elevation’s ESG strategy.

“We are very proud of the progression we have made in modernising the LDC portfolio and making a difference to the environmental performance of the homes.

“We would like to thank the operators and their staff for their partnership and will particularly remember their extraordinary efforts to keep residents safe during the Coronavirus pandemic at the very start of our relationship.

“The realisation of this investment for our investors is a great vote of confidence in the UK care home sector and reinforces the positive social outcomes that can benefit an investment strategy.”

The Lodge Care Home, Killamarsh, is also part of the deal