HC-One, the UK’s third largest care home operator, has appointed property agent CBRE and investment bank Gleacher Shacklock to manage the sale of more than 70 homes.
Proceeds of the sale and lease back programme will go towards reducing the company’s debt, currently running at around £250 million, and making sure it has a prudent long term financial future, the company told Care Home Professional in a statement.
“HC-One’s debt level is currently approximately £250 million and this latest announcement is going to see large chunk of that debt tackled,” a spokesman adds.
“Ensuring that our care homes are stable and sustainable is always a top priority, and we will be working with long term investors and pension funds to achieve this,” HC-One explains.
“This process will put us in a strong financial position, with almost double rent cover and long term tenancies. We will continue to own half of all our care homes,” it asserts.
HTC currently owns around 275 properties across the UK, the majority of which were acquired from Southern Cross, which collapsed in 2011.
Real estate business magazine Property Week says that HC-One expects to sell the homes for a total of around £300 million.