Healthcare real estate investment trust (REIT) Welltower has partnered with a Safanad-led investment group to recapitalize leading care home operator, HC-One.
Welltower has provided a £540m senior secured loan in addition to a £55m equity investment. As part of the refinancing deal, HC-One is also reducing its debt by £66m.
Additionally, Safanad and Court Cavendish significantly increased their investment in HC-One with the former increasing its ownership to become a majority stakeholder.
HC-One’s Chief Executive, James Tugendhat, (pictured) said: “We are delighted that our strong financial health is supporting us to invest in our homes, and reward our colleagues as we strive to be The Kind Care Company.
“We are pleased that Welltower, with its expertise and commitment to the sector, is supporting HC-One. We are confident we can improve and develop HC-One to be true to our purpose of serving at the heart of each of our communities and being the first choice for families, colleagues and commissioners.
“The continued support of our owners, and all of our stakeholders, gives us the confidence to weather any further challenges from the pandemic and to reinforce our strategy of better meeting the evolving, and more complex care needs of the communities we serve.”
Shankh Mitra, Welltower’s Chief Executive Officer, added: “We are proud to partner with a Safanad-led investment group in the recapitalization of HC-One. Welltower is familiar with the HC-One portfolio through our mezzanine debt investment dating to 2014, and we are delighted to increase our commitment to this uniquely positioned platform.
“We are particularly pleased to support HC-One’s strategy to invest in its communities and staff who have performed their role admirably throughout the COVID-19 pandemic. After a challenging period for the UK seniors housing sector, we look forward to participating in a period of recovery and growth in the years ahead.”