OakNorth lends £19.5m to Care Concern Group to support sale and leaseback
OakNorth Bank – the UK bank powered by OakNorth – has provided a £19.5m loan to Care Concern Group, one of the UK’s most highly-regarded care home operators.
Founded in 1991 by Balbir Johal, Care Concern is a family-run business with numerous sites across Scotland and a focus on general nursing and dementia care. Balbir’s son, Manpreet Johal, took over the business in 2004, helping to lead its expansion from four sites at the time to the 44 sites it has today and a further 13 in development. The Group will use the finance to refinance its existing debt package to facilitate a sale and leaseback with Alpha Real Capital.
Manpreet Johal, CEO of Care Concern Group, said:
“The UK population is ageing rapidly, with the number of people over the age of 85 years old forecasted to more than double in the next 20 years. A substantial minority of this age group will need some form of residential care which can only be provided in a care home or hospital. It is with this in mind that our focus is firmly on raising the standards within the care sector, offering a range of unique services designed to enhance the at-home experience, such as: spas, gyms, wellness rooms, and a library, as well as facilities specifically for those with dementia such as reminiscence rooms and specialist gardens.”
Deepesh Thakrar, Senior Director of Property Finance at OakNorth, said:
“Annual spending on residential care for older people has risen dramatically from £9.3 billion in 1995 to £15.9 billion in 2017, with Scotland remaining one of the hotspots for care home investments in the entire UK. With an average occupancy rate of 90 percent, Care Concern Group continues to be a well-regarded and popular care home operator. We expect the group’s portfolio to continue to grow and look forward to working with them on future projects.”