A residential care home operator has secured a loan of more than £2 million – so it can acquire a specialist care home in Stoke-on-Trent.
OakNorthBank has lent £2.3 million to Moorlands Healthcare Ltd, part of My Choice Healthcare Group.
The money will be used to acquire Harewood Park Care Home in Cheadle which is a specialist facility for 18 to 65-year-olds which suffer from mental illness, learning disabilities and brain injuries.
The company also wants to refurbish and operationalise three additional rooms at Harewood Park to increase its capacity to 37 rooms.
The new managing director of the care home will be Bethan Evans.
The deal is the first acquisition for Moorlands Healthcare Limited which is aiming to acquire more care homes in key locations in Staffordshire, the Midlands and South Wales throughout 2020.
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 is with this in mind that we are implementing a buy and build strategy to provide a larger number of patients with the necessary activities and amenities to fit their rehabilitation and care needs.
“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.”
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 therefore 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.”
