Our Investment Case

We retain a conviction that placing long-term investment capital in purpose-built properties which offer suitably modern and well-equipped environments for residents and their carers, is the right thing to do.

Demographic Changes

As the population of the UK grows and its age profile becomes more weighted towards the elderly through increased life expectancy, more people will find themselves needing care and support than has been the case historically.

The number of over-85s, the primary users of care homes, is projected to double within the next 20 years generating an increased demand for care home residency. A recent study has concluded in excess of 70,000 new beds are required in the next 8 years. 

Supply of Care Homes

The UK elderly healthcare market remains deeply fragmented and dominated by small owner-managed providers, many using either converted properties or older purpose-built homes. These buildings represent a large proportion of the UK's existing care home stock, yet each can present a difficult environment in which to provide effective and financially viable care. Beds in these properties continue to be deregistered by care providers as sectoral challenges are exacerbated by working in properties suffering from poor design and sub-par facilities. 

Opportunity

Significant investment is required to provide modern homes sufficient to meet both the organic demand increase arising from demographic changes, and to replenish the closure of older stock. We believe that our modern, best-in-class homes, let to tenants who know their local market and can demonstrate a strong care ethos and excellent operational capabilities provide a compelling investment case. Our lease structures, which are long-term with upwards only rent reviews, provide a stable income obtained at attractive pricing and backed by the demographic and demand/supply imbalances.

 

Risk Reward Spectrum   

Three-year portfolio total retun vs standard deviation 2013-2016 (since the inception of the IPD UK Annual Healthcare Index)

Target - Risk Reward Spectrum graph

 

Get in touch with us

If you'd like to discuss funding for your project, or to see how we can work with you to improve care for the elderly.


Contact Us

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