Home Finance Four Seasons Health Care Group launches sales process following period of sustained income growth

Four Seasons Health Care Group launches sales process following period of sustained income growth

by Kirsty Kirsty

Four Seasons Health Care Group have launched the sale of the Group consisting of 46 freehold care homes in areas of strong demand for residential and nursing care provision across England, Scotland and Jersey.  The homes trade under either the Four Seasons Health Care or brighterkind brands.     The Group has appointed CBRE, a leading advisory firm in the health and social care sector, to act as sales advisor to conduct the sales process.   Last week the Group announced a strong performance to start 2024 in its most recent bondholder call with strong occupancy recovery to over 90% and improving care quality outcomes, which are now considerably above market averages. The Group’s 46 care homes have a strong resident mix across self-funder, Local Authority and NHS commissioned care, in a wide range of local markets, with a well-respected focus on nursing and dementia care.​   The 46 freehold homes are well specified with a significant proportion being purpose-built. The Group has invested significantly in this estate over recent years, with additional budget allocated for the remainder of 2024 and into 2025.  This investment has included a substantial digitisation and technological investment completed throughout this year, including to home-level IT infrastructure and systems, the most recent of which is the ongoing rollout of Electronic Medication Administration Records (eMAR) which is due to completed by the end of 2024, as well as piloting of digital care records.   The ongoing improvement in performance of the Group follows sustained quarter-on-quarter growth throughout 2023, with turnover £12.5m higher than in 2022 on a like-for-like basis.  Occupancy currently stands at over 90% with an average weekly fee of over £1,150.  The Group’s current care quality, as measured by care quality regulatory ratings, is recorded as 83% Good or equivalent, considerably higher than the sector average*.  This is also reflected in the recent satisfaction survey of over 1,700 residents and relatives, which resulted in an overall Customer Satisfaction Index of 83%.    Four Seasons Health Care Group’s Chief Executive Officer, Joe O’Connor commented, “This launch of the sales process reflects the significant operational and financial performance these homes have achieved.  The homes are strongly positioned with excellent care quality, local market reputations and strong financial performance.”   “In light of this, together with improved capital market conditions in the UK and early interest from the lending community, now is the right time to launch this sales process and we anticipate considerable interest from a wide range of prospective investors.” “During this sales process, our priority remains the delivery of excellent care quality for all residents, and as such the Group will work closely with CBRE, potential purchasers and other counterparties, alongside relevant regulators, to ensure that the sales process doesn’t detract from this.”   *CQC ratings data, LaingBuisson Care Homes for Older People Market Report February 2024 – 78%

Related Articles