PrimeLife acquires Springhill Care Group
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PrimeLife has acquired Lancashire care home provider Springhill Care Group.
The deal has resulted in nine redundancies at Springhill Care Group’s sister company’s Springboard Business Support Ltd at its head office in Accrington and the £11.5m sale of the freehold of two former Springhill care homes to AEW UK Real Return Fund.
Simon Van Herrewege, Director of PrimeLife, said: “The acquisition of Springhill Care Group will further complement our growth strategy, adding three good quality established services and staff teams that are providing first rate services to those they care for.
“We very much look forward to building on these new relationships and seeing where we can bring additional service improvements for current and future clients.
“We have held meetings with every member of staff across the Springhill group to bring them up to speed and there will be no compromise in the highest quality of recruitment, training and investment in people as we move forward.”
The two homes sold to AEW UK Real Return Fund under 30-year leases are Springhill Care Centre in Accrington and Birch Green Care Home in Skelmersdale.
Ian Mason, Portfolio Manager at AEW UK Real Return Fund, commented: “The care home sector is driven by strong social and demographic needs and the UK is set for huge growth in its elderly population over the next few decades. As a result, it has strong market fundamentals and should remain resilient to any Brexit risks/uncertainties and AEW has taken the strategic decision to increase the Fund’s weighting in this sector.
“We are therefore delighted to have these two properties with PrimeLife as tenants, a top provider of higher acuity and nursing care, with a strong balance sheet. They are well regarded by operators and investors in areas of complex care needs and specialities. The Fund was attracted to the deal due to the yield, length of income with annual inflation linked reviews, covenant strength and the fact that the purchase price is underpinned by the going concern value of the homes.”
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