Elevation Healthcare Properties – H1 2024 Update

Capital Raising:  EHP has raised £348m of equity and debt capital since the beginning of 2024:

• Equity capital: following the last equity raise of £330m in Q4 2022, EHP raised an additional £157m of equity during Q1 2024. This equity will be used to acquire and develop prime elderly-care real estate in the U.K. in line with EHP’s core strategy.
• Debt capital:
  • EHP refinanced an existing debt facility of £153m for a further 5-year term with a leading high street bank. The term loan was converted into a Sustainability Linked Loan alongside Sustainability Linked Hedging, demonstrating EHP’s commitment to sustainability and advancing the existing ESG strategy. The Sustainability Linked Loan will assess the progression of EHP against:
    • the annual Global Real Estate Sustainability Benchmark (“GRESB”) reporting which assesses a breadth of ESG and sustainability credentials;
    • the progression of EHP’s asset level certification against BREEAM in-Use; and
    • commitment to fundraising and volunteering for the selected organisations.
  • EHP raised an additional £38m bank facility from Virgin Money, as part of the Berkley Care transaction detailed below. The facility was rolled over as part of the transaction with over 4-years left on the term.
  • All of the debt raised is fully hedged in line with EHP’s interest rate risk policy through a combination of swaps, caps and floors.

Transactions:

• Acquired from Clariane S.E. (“Clariane”) 11 properties, simultaneously leased back to Berkley Care Group (“Berkley Care”). Concurrently, Berkley Care’s existing leadership team agreed to acquire the operations of Berkley Care operations from Clariane.  The total consideration to Clariane was £207 million.  This transaction cements and expands EHP’s existing relationship with Berkley Care, a highly-regarded operator of 12 modern award-winning prime care homes across England comprising 805 high-quality beds.
• Acquired a 60-bed, modern purpose-built care home in Ormskirk Lancashire, with a simultaneous lease to operator Torwood. Additionally EHP has completed the acquisition of land and a forward-funding agreement to support the development of a state-of-the-art, 61-bed care home in Huddersfield to be developed and subsequently let to Torwood.  Torwood is a leading care operator with two operating care homes and more than five developments under construction, led by experienced management team in partnership with specialist contractor Torsion.

James Giles, Investment Director at Elevation said: “We are excited to announce these transactions, demonstrating the stable and resilient growth of our well-established EHP vehicle.  EHP seeks to address the structural undersupply of high-quality elderly care beds in the U.K. to deliver positive social impact through the provision of modern, high-quality care environments.  These facilities are a vital part of the healthcare infrastructure fabric of the country and are designed to meet increasing environmental standards.  These transactions are testament to the successful alignment of Elevation with its investors and stakeholders, supporting both sustainable returns and the provision of high-quality elderly care. Focused on the long-term, we are committed to delivering strong outcomes for our communities and are working towards completing our 2024 ambitions.”

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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.