Barchester Healthcare has bought 24 brighterkind care homes from Terra Firma, for an undisclosed sum.
The homes, which sit outside the main Four Seasons group, will add 1,570 beds (17 freehold and seven leasehold properties) to the Barchester portfolio that has more than 200 care homes and private hospitals.
CM understands the deal to be worth £165m with 60% private pay. Knight Frank were the selling agent, while Connell Consulting conducted investor commercial due diligence. Eversheds provided legal advice to Terra Frima.
The properties were originally built by Avery Healthcare and bought by Terra Firma in 2013.
As reported last week, Barchester was closing in on a deal to buy the homes.
The 24 properties had been subject to a legal battle. As reported in June last year Terra Firma won a court case against H/2 Capital Partners after an error by the US hedge fund’s lawyers in relation to the homes.
The High Court ruled that law firm Allen & Overy had incorrectly pledged 24 brighterkind care homes to H/2 Capital in 2016. The properties were separate to those being sold under a deal between Terra Firma and H/2 Capital Partners.
Dr Pete Calveley, Barchester Healthcare chief executive, said: ‘At Barchester, quality of care for our residents is our guiding objective. We are delighted to have the opportunity to acquire these 24 homes from Terra Firma, and look forward to welcoming staff, residents and relatives to the Barchester family.’
A Terra Firma spokesperson said: ‘We are delighted to have agreed the sale of 24 Brighterkind homes to Barchester. Barchester is one of the most established owners of care homes in the UK and we are confident there will be a smooth transition to a new long term owners who can provide continuity of services and care.’
Barchester saw revenues reach £621.3m in the year ended 31 December 2018 (2017: £591.2m), up 5.1%. EBITDAR rose to £185.1m (2017: £174.1m).
A report in the FT in July said Australian infrastructure bank Macquarie pulled out of a potential £2.5bn deal to buy the provider due to Brexit uncertainty.