Voyage Care sells 40 properties to Triple Point

Andrew Cannon will take up the role of CEO at Medica in April

Voyage Care is selling a portfolio of 40 supported living properties to Triple Point Social Housing REIT for up to £27.4m.

The sale of 36 properties across the UK has been completed, with the remaining four expected to go through within two months following a consultation process with tenants.

The deal comprises an initial £24.5m and a deferred amount of up to £2.9m.

Voyage had leased the properties to registered providers, who in turn sublet housing units within the homes to tenants under individual tenancy agreements.

Following the sale, Triple Point, which funds the supply of specialised supported housing for vulnerable people in the UK, will own the freehold interest in the properties. However, agreements between registered providers and tenants will remain in place.

Voyage Care will continue to provide specialist support to individual tenants who have learning disabilities, autism, brain injuries or other complex needs and will retain ownership of its registered care home freehold properties.

The sale means it will cease to receive rent on the properties it has sold. This is expected to result in a reduction of EBITDA by approximately £1.7m on an annualised basis.

The effect of this EBITDA reduction and the receipt of proceeds for the sale will be to reduce the group’s leverage, the company said.

Andrew Cannon, Voyage Care chief executive officer, said: ‘I am delighted that we have sold this property portfolio to Triple Point. This transaction, which is in line with our strategic objectives will have no or minimal impact on the people we support, improves the group’s leverage and frees up our capital resources to develop the business and continue to deliver great care and support.’

Max Shenkman, head of investment at Triple Point Investment Management, the fund manager for Triple Point Social Housing REIT, said: ‘This transaction involves a well-diversified portfolio of assets – both geographically and across housing associations – and a high-quality care provider.

‘Properties like this are helping deliver a better quality of life for some of the most vulnerable people in our society whilst saving local authorities money and generating a strong, sustainable financial return for shareholders.’

As reported in August, growth in both registered and community-based care helped increase revenue at Voyage Care.

In its quarterly update, the provider grew revenue by 7.4% to £65.1m (Q1 2019: £60.6m), while EBITDA increased 11.8% to £10.4m (Q1 2019: £9.3m) but this was partially offset by rises in staff costs because of the National Minimum Wage.

Since its initial public offering in August 2017, Triple Point has bought more than 300 supported housing properties across the UK for £359.3m.

Gowling provided legal advice to Voyage Care, while Triple Point were advised by DAC Beachcroft.