- The finance will be used to acquire Old Raven House, a grade II listed detached care home registered with the Care Quality Commission;
- The site consists of 29 bedrooms but has planning permission to add a further nine bedrooms to take total capacity to 45 residents;
- The care home has been 100 percent occupied for the past 10 years with a waiting list for residents;
- It is estimated that by 2025, there will be close to 14.3m people aged 65 or over in the UK, so the need for care homes nationally continues to grow.
OakNorth – the bank for entrepreneurs, by entrepreneurs – has provided a £2.4m loan to Sire Properties, the niche property asset manager with a specialised focus on social infrastructure, in particular, the healthcare sector.
Based in Hook, a small town and civil parish in the Hart district of northern Hampshire, Old Raven House has strong ties with the local community, with many communal rooms and a strong focus on group activities and interaction. Even though there are 10 similar care homes (i.e. without nursing) within six miles of the subject property, it has been 100 percent occupied for the last decade with a waiting list for residents. The home has been operated and managed by Mrs Anne Turner who will remain with the business post-acquisition.
Established in 2015, SIRE is a niche property asset manager focused on offering investors secure annuity income from real estate in the UK. The business also implements development finance for a diverse range of social infrastructure and residential projects, providing bridge funding, stretch debt and equity to developers. SIRE’s primary source of healthcare opportunities is dental property for which it has 19 freeholds, however growth into primary care, care home and other social infrastructure sectors is being realised. SIRE also provides a broader property advisory service to cater to the specific requirements of existing clients.
Patrick Ryan, Managing Director of SIRE Properties, said: “Despite the fact that there are 10 care homes offering similar services to Old Raven House within a six-mile radius, the home has continued to see excessive demand for the last decade. This is a testament to the invaluable role it plays in the community and the exceptional job Anne has done in managing it for all these years. Priya and the team at OakNorth were incredibly supportive throughout the transaction – responses to queries were often provided within hours and we greatly appreciated being given the opportunity to make our case directly to the Credit Committee.”
Priya Harley, Director, Debt Finance at OakNorth, said: “It is estimated that by 2025, there will be close to 14.3m people aged 65 or over in the UK, so the demand for care homes is expected to continue rising substantially. Old Raven House, which has seen 100 percent occupancy for the last decade, has become a central part of the Hook community and with SIRE’s support, the business will now be able to continue thriving for decades to come. They have ambitious expansion plans for the home and are incredibly experienced in the healthcare sector with 19 dental freeholds and two GP surgeries. We are glad to have assisted them on this transaction and look forward to working with them as they continue to expand their portfolio.”