Elevation Completes Sale of Thirty-Two UK Care Homes to Franklin Real Asset Advisors

The portfolio of assets, advised by Elevation for the past five years, was previously leased to Four Seasons Health Care (“FSHC”).  Elevation was engaged by LDC’s investors in 2020 to advise on the transition of the operating assets from FSHC to six replacement operators on new 35-year FRI leases with institutional terms.  Elevation has overseen the investment through to this successful sale.

Achievements for the investment include: the modernisation of leases including full reporting obligations, enhanced downside protections and green lease provisions; the raising of debt financing on the portfolio (which was previously unlevered) from a high street bank; and the investment of approximately £6m of capex including targeted ESG enhancements, asset modernisation & repositioning  including increased bed capacity.

Eamonn Meadows, Investment Director at Elevation said: “Fulfilling the market need for high quality care home beds in sustainable real estate squarely aligns with Elevation’s ESG strategy.  We are very proud of the progression we have made in modernising the LDC portfolio and making a difference to the environmental performance of the homes.  We would like to thank the operators and their staff for their partnership, and will particularly remember their extraordinary efforts to keep residents safe during the coronavirus pandemic at the very start of our relationship.  The realisation of this investment for our investors is a great vote of confidence in the UK care home sector and reinforces the positive social outcomes that can benefit an investment strategy.”

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Disclaimer
This press release is issued by Elevation Advisors LLP, which is authorised and regulated by the Financial Conduct Authority. The information contained herein is provided for informational purposes only and does not constitute investment advice, an offer to buy or sell any financial instrument, or a solicitation of any kind. Past performance is not a reliable indicator of future results. Any forward-looking statements or projections are based on current assumptions and subject to risks and uncertainties that may cause actual outcomes to differ materially. This communication is intended solely for professional clients and eligible counterparties as defined by the FCA. It is not directed at retail clients and should not be relied upon by any person who does not meet the criteria for professional client classification. Investments may involve significant risk, including the potential loss of capital. Recipients should seek independent financial advice before making any investment decisions. While reasonable care has been taken to ensure the accuracy of the information provided, Elevation Advisors LLP makes no representation or warranty as to its completeness or reliability and accepts no liability for any loss arising from reliance on it.