Four Seasons Health Care is in a standoff with a group of its landlords as the two sides grapple to settle a rent dispute.
Terra Firma, the private equity company behind FSHC, is negotiating to cut rents, but landlords have hired Houlihan Lokey, a City restructuring consultant, to advise them, according to a report in today’s The Times.
Four Seasons owns the majority of its 420 properties but pays quarterly rent bills of £12m to landlords in properties that it leases, according to recent filings.
Elli Investments Ltd, the parent group of Four Seasons Health Care, reported a positive start to 2016 with average weekly fees across the group rising 3.8% to £715 and occupancy increasing from 85.3% in Q1 2015 to 86.4% in the first three months of this year.
After adjusting for disposals and home closures Q1 2016 turnover for the group was approximately £7m higher than Q1 2015.
Within the group, total turnover in the Four Seasons Health Care Division was approximately £4m higher than Q1 2015 after adjusting for the reduction of approximately 840 effective beds from the closure or sale of around 30 care homes.
Profit for the quarter was £9.2 million, just £0.3 million lower than the same quarter in 2015, but the group’s debt of £525 million increased by £13 million in interest during the quarter.