Charles Russell Speechlys Advises CareTech on Ground Breaking Deal
Charles Russell Speechlys’ real estate team in Guildford has advised CareTech Holdings plc, one of the leading providers of specialist care in the UK, in an innovative transaction to raise £30 million in cash to fund its next growth phase. Under the terms of the agreement, the freehold to 41 CareTech properties, predominantly in London and the South East, have been transferred to Alpha Real Capital’s managed funds in exchange for cash and new ground rent leases for a 150 year term at a yield of 3.4%.
Whilst ground rent transactions are common in the hotel and leisure industries, the CareTech transaction is the first of its kind in the healthcare sector. Charles Russell Speechlys advised CareTech on all legal aspects including commercial lease structuring, contract and revenue arrangements. Knight Frank arranged the deal.
According to Debra Kent, real estate partner at Charles Russell Speechlys who advised CareTech: "The transaction was complex and consequently took some time to complete, but our extensive experience in the healthcare sector stood us in good stead. We found it very interesting to work on because we were setting new precedents in this ground-breaking area. CareTech has secured significant funds to re-invest in the business and I am certain that other care home operators will replicate this model when seeking ways of funding their own growth plans. "
Farouq Sheikh, executive chairman of CareTech added: "We worked closely with Charles Russell Speechlys and Knight Frank to achieve this excellent outcome for our shareholders. We look forward to deploying the funds raised and have already identified a number of potential earnings-enhancing acquisition opportunities, which we believe will meet the evolving requirements of care commissioners along with our own growth criteria. ”
The Future of Property Careers
Join to our panel discussion and Q&A with industry leaders on the range of opportunities within the property and construction sector.
Q&A: Talking the telecoms talk
Georgina Muskett and Jonathan Wills answer queries on Electronic Communications Code agreement.
Property Patter: Navigating the complexities of Pharmacy Property
Pharmacy property is a specialist area which contains many traps for the unwary.
What do the new Debt Respite Scheme Regulations mean for Landlords and Tenants?
This will provide legal protection from creditors in the form of either a breathing space or a mental health crisis moratorium.
Risk allocation in commercial leases: the High Court considers rent suspension, insurance and frustration arguments
Read our summary of the full judgement on the latest Covid arrears case.
Building Back Better: Future Gazing
What’s next for the hospitality industry post-pandemic?
Building Back Better: Re-examining your proposition
Why hospitality businesses should re-examine their proposition now
Building Back Better: Real Estate and Restructuring
How and why should hospitality businesses re-structure post pandemic?
Asian Legal Business, Hubbis and eprivateclient report on the firm's expansion in Hong Kong
The firm's Hong Kong office continues to expand with the relocation of Real Estate Partner Simon Green to lead the firm’s focus in Asia.
UK property market continues to thrive
Stamp Duty, Green houses and 5% deposits: The Government’s Commitment to Housebuilding Continues
We look at the current raft of measures the Government has in place to support home ownership and the housebuilding industry.
Property Patter: cohabitees and property rights - what do couples need to think about?
It is easy to drift into complicated territory when it comes to property arrangements between a couple
Charles Russell Speechlys LLP continues Hong Kong growth with the relocation of Real Estate Partner
We are delighted to continue the growth of our Hong Kong offering with the relocation of Simon Green to lead the firm’s focus in Asia.
Lockdown rent arrears: the High Court gives its (summary) view
First Homes: Bringing You Up To Date
Claire Fallows sets out the latest position on the introduction of First Homes into the planning system here
Judicial Review Reform - Further Consultation
A further consultation on judicial review follows on from that issued only last year. Helen Hutton provides an update here.
The Oxford-Cambridge Arc Opportunity: How Could It Benefit You
A return to strategic planning is mooted for the Oxford-Cambridge Arc. Sophie Willis sets out the route map here.
Tall Buildings In London: Challenges and Opportunities
How will new policies, including the adoption of the London Plan, affect the delivery of tall buildings in the capital and beyond?
Strategic Planning, Design & Beauty: Proposed Changes To The NPPF
The consultation on changes to the NPPF have planning and strategic land implications, read more here.
Delayed Environment Bill To Return Autumn 2021
After significant delay due to the 2019 election and COVID-19 , estimates suggest the Environment Bill will become law this autumn.