Care homes Reading time: 2 mins

Enabling the development of a high-quality purpose-built elderly care home, Greater Manchester

100%

block contract with the NHS

35 year

full repairing and insuring lease

71

bedrooms

The client and project

New Care Group was established in 2009 and is an exciting expanding care home operator across the Midlands and North West England. As part of their expansion plan, they engaged in the development of Bramhall Manor, a 71-bed modern care home. Having secured the land, subject to planning, they were seeking finance to progress to development through a forward-commitment arrangement. 

We were able to agree this structure on a 35-year lease agreement. Construction began in 2019. However, in early 2020 the coronavirus pandemic began. We wanted to support New Care and forged ahead with a funding solution. As a result, despite market challenges, the build completed in April 2020. 

Before completion, New Care also reached an agreement with the NHS to block book the whole facility, supporting the ongoing care of patients due to the pandemic. A new care home can take 2-3 years to reach maturity in occupancy. However, here it was contractually complete from day one. As a result, the investment was de-risked. 

Our partnership

Bramhall is one of a number of new developments we have and continue to develop with New Care as an operator. We have built a good relationship with them, having backed them since inception. We are proud to be their investor of choice for a long-term partnership. 

As a brand-new operator in the sector, they behaved similarly to a start-up in their ability to be dynamic and challenge the norm. While they started out as small, they had ambitions to grow – meaning they had little existing covenant. 

We partnered with New Care because we believe in them and their vision. Their focus on bringing a fresh, contemporary style of home to the market fits well with our strategy to deliver modern, fit-for-purpose homes. This is crucial in a sector struggling with obsolescent stock. Our partnership has enabled New Care to develop out a portfolio of high-end new care homes. 

“This case study is an example of how we have supported start fledgling care home operators who share our ethos of outstanding care in first-class environments. Offering forward commitment funding enables operators to roll out a development pipeline with less demand on their own capital. This is key in unlocking the demand for modern homes as elderly population growth continues. “

Chris Wishart, Director of Origination, Octopus Real Estate

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