Scottish Care Home Group
Christie & Co facilitated a £45 million off-market sale-and-leaseback for a family-run Scottish care home group. Through a discreet process, we matched the three-home portfolio (plus development) with Target Healthcare REIT, delivering a 6% yield while enabling the family to unlock capital for retirement and expansion whilst remaining as tenants.
Business. Built around You.
Intro & Challenge:
Christie & Co was approached by the vendor to explore a highly discreet, off-market process to release capital from their care home group, a long-established, family-run operation. This was driven by a desire to facilitate the retirement of one shareholder and to provide funding for the son to grow the group through future expansion.
The group itself comprises three high-quality care homes and a care home development in Scotland’s Central Belt. The homes serve a predominantly private-pay client base and are well-specified assets with excellent operational and financial track records.
Our work:
Christie & Co ran a targeted, highly confidential process with bespoke approaches made to a small number of UK and international funds. We focused specifically on investors who we considered a good strategic fit relative to the profile of the opportunity and the culture of our client’s business.
Following receipt of proposals from several different funds, Target Healthcare REIT was selected as the preferred partner. The deal was an excellent strategic fit for both Target and our client, who is now a new tenant of Target.
Result:
Target Healthcare acquired the portfolio of three modern, operational care homes and a forward commitment to acquire a fourth, representing a total investment of £45 million across the two transactions. Including costs, the transaction reflects a blended net acquisition yield of 6%. The fourth care home, pre-let to the same operator, is due for completion in 2026. The properties benefit from 35-year FRI occupational leases with RPI-linked caps and collars.