Global investment firm Safanad is increasing its investment in HC-One to fund its acquisition of 122 Bupa care homes.
The move, along with capital provided by StepStone Real Estate, clears the way for the Bupa acquisition announced last week (see BREAKING NEWS: HC-One agrees to buy 122 Bupa care homes), subject to regulatory approval.
Kamal Bahamdan, Founder & Chief Executive Officer of Safanad, said: “As part of our continuous commitment to the sector, Safanad is pleased to invest in the acquisition of the Bupa portfolio and back Chairman Dr Chai Patel and CEO Justin Hutchins.
“The company’s commitment to providing the kindest care to residents in a high-quality environment for its talented team of employees is something that we are extremely proud to be associated with and support.
“HC-One’s leading position in its markets combined with its strong management team will enable the company to continue to be that high-quality provider through its commitment to excellence and care.”
Since 2009, Safanad and its investors, alongside its strategic industry partner Formation Capital, have acquired assets of over US$5.2 billion (£4.0bn) across a broad spectrum of senior care investments in the US and the UK.
In 2014, Safanad and Formation Capital led the acquisition of HC-One, together with Court Cavendish.
News of financial backing for the deal follows concern from some analysts about the sector’s increasing debt exposure (see Bupa acquisition fuels debt exposure concerns).