Allegra/Moorfield JV acquires 183-bed care home portfolio
A joint venture (‘JV’) between Allegra Care, a UK-focused care home operator, and Moorfield Group, a UK specialist real estate fund manager acting on behalf of Moorfield Real Estate Fund V (Moorfield), has completed the acquisition of four nursing, dementia and care homes in Bristol and South Gloucestershire.
The JV acquired the homes from Grove Care, a family-run care home business, for an undisclosed sum. The acquisition, supported by Virgin Money as debt provider, adds a further 183 beds to the partnership’s rapidly growing nursing, dementia and care homes portfolio.
Olive Tree House, a 65-bed home, and Rose Garden, a 40-bed home, are co-located in Patchway. The two properties are modern, fit-for purpose homes where 100% of the beds have accessible wet room ensuites, each allowing for the implementation of Allegra Care’s bespoke ‘household care’ model.
Blossom Fields, a 43-bed home with 100% of the beds having accessible wet room ensuites, is located in Winterbourne and is co-located with The Grove, a 35-bed home specialising in residential dementia care. Both The Grove and Blossom Fields are rated “Outstanding” by the Care Quality Commission.
The four homes provide a range of care services tailored to residents’ needs, with options for specialist dementia and nursing care and 24-hour assisted living for Olive Tree House, Rose Garden and Blossom Fields. The Grove specialises in dementia care.
The homes also offer residents a range of community facilities and wellbeing-focused amenities, including spacious lounges and purpose-built gardens.
The acquisition is the latest by the partnership between Allegra Care and Moorfield, which now own and operate eleven homes across Hampshire, Cambridge, Suffolk, and South Gloucestershire. The two companies aim to create an initial £125 million portfolio of modern, fit-for-purpose nursing, dementia and care homes across the UK, with a focus on areas supported by favorable demographic trends.
The four homes acquired from Grove Care will form the nucleus for the partnership’s Western Region operational cluster, in addition to the already existing Southern and Eastern Regions.
Helen Jones, Chief Executive Officer of Allegra, commented: “We are very pleased to confirm the addition of Olive Tree House, Rose Garden, The Grove and Blossom Fields to our growing family of homes. The homes are well-established, well regarded, attractive, and warm, with strong standards of service. We welcome our new colleagues to the Allegra Care team. We thank our due diligence partners for their efforts. The acquisition heralds a tremendous end to 2022 for Allegra Care.”
Charles Ferguson Davie, Chief Investment Officer of Moorfield, commented: “The UK nursing, dementia and care home market is marked by fragmented ownership and a severe demand-supply imbalance in the face of an ageing population.
“As demonstrated by today’s announcement, we see a major opportunity to create a market-leading portfolio with our joint venture partners Allegra Care, with both parties united in their vision in taking a customer-centric approach to operations that delivers high levels of care and comfort to residents.”
The Directors of Grove Care, commented: “Having established Grove Care over 30 years ago and built the group to become one of Bristol’s leading elderly care providers, we are pleased to secure a sale to Allegra Care. It was clear from the outset that their values and approach to care are closely aligned with ours and we wish them all the very best.”
Robert Kinsman, Regional Director at Christie & Co who brokered the deal commented: “Having worked with the team at Grove Care for over fifteen years we were delighted to represent the family in the sale to Allegra Care. This is a significant transaction in the elderly care sector and underlines investor appetite.” Robert continued “Grove Care is a fantastic addition to the Allegra portfolio. Having brokered the sale of their first care home, St Georges in Weston super Mare in 2019, it’s great to be part of their ongoing growth.”
Allegra Care and Moorfield were advised by CBRE, BCLP & Menzies.
Grove Care was advised by Christie & Co, RWK and Hazelwoods.