Finance for care home acquisitions provided by London business bank

A London bank has extended its lending efforts to enable the acquisition of a care home in Staffordshire which specialises in young adults’ mental health.

OakNorth Bank has provided £2.3m to Moorlands Healthcare Limited to assist with the acquisition of Harewood Park Care Home in Cheadle. The funding will also be used to refurbish and operationalise three additional rooms at the facility, increasing its capacity to 37 rooms.

It marks the first acquisition for Moorlands Healthcare Limited, which is part of the newly incorporated My Choice Healthcare Group, which is aiming to acquire more care homes in the Counties adjoining Staffordshire and other key locations across the Midlands and South Wales throughout 2020.

Harewood Park Care Home offers residential and nursing care for young adults between 18 and 65 years suffering from mental illness, learning disabilities and brain injuries. To home faces high demand, with average occupancy rates exceeding 90 per cent in the last three years.

Adam Brinn, director of debt finance at OakNorth Bank, said: “As we look to expand our lending efforts in the West Midlands and Birmingham where we now have an office, we’re excited to partner with Moorlands Healthcare Limited and My Choice Healthcare Limited team on this acquisition.

“The incoming management team for Harewood Park Care Home have more than 30 years of experience working in the industry and running care homes. They are well-equipped to ensure this highly-performing care home continues to receive the support and leadership it needs to meet ongoing demand.

“As the team lays out plans for further acquisitions this year, we look forward to working with them on additional deals in the months to come.”

Craig Sheppard, founder and chairman of Moorlands Healthcare Limited and My Choice Healthcare Limited, said: “With the West Midland’s supply of care home beds lower than any other region in the UK, it is in desperate need of more care facilities.

“It was clear from working with the team at OakNorth that this is a sector they understand and that they have done numerous transactions in before.”