Avery Homes Group has secured a £33 million funding package from Yorkshire Bank that the business will use to accelerate growth.
AHG, headquartered in Northampton, operates over 3000 beds in 47 care homes in the UK and employs around 4000 people. Its main stakeholder is Welltower, a real estate investment trust (REIT).
The Yorkshire Bank funding is a mixture of revolving credit facilities and development finance. It will support the development of a new home at Kingstanding in the West Midlands and a refinancing of four of the group’s existing facilities at Ashurst Mews, Moulton and Glenmoor House, Corby in Northamptonshire and at the Abbey Court and Alma Court homes in Staffordshire.
Construction work on the Kingstanding home will start this summer, with residents stating to move in at the end of 2017. The modern home will offer private dining facilities, air conditioning, a wellbeing centre and a small cinema.
John Strowbridge, founder and CEO of AHG (pictured above), believes the UK market continues to offer opportunities to expand through acquisition, redevelopment and new build. “We have successfully grown the group over a number of years both by acquisition and by regularly investing in our properties to maintain the high quality of the facilities we are able to offer our residents.
“We believe there is considerable potential for further growth and, for that reason, we felt the time was right to seek a new funding partner, who alongside our main stakeholder, Welltower, could support the next stage of the expansion strategy for the business.
“Yorkshire Bank provided the loan to support the purchase of our first care home 25 years ago so with this new funding things really have come full circle.
“The sector knowledge demonstrated by Yorkshire Bank’s Healthcare specialists and the proactive and flexible approach which the team as a whole have taken has been extremely welcome.”
Derek Breingan, head of healthcare at Yorkshire Bank, said: “AHG have built a strong reputation within the care sector for the quality of their portfolio and services and for their strategy of consistently re-investing in their facilities and we look forward to supporting them as they take the business through the next phase of its development.
“Healthcare is a key sector for Yorkshire Bank and our focus is on ensuring the availability of development finance and growth funding for operators.”