French Clariane sells UK care homes to Elevation for £207m

Paris-headquartered care specialist Clariane – formerly known as Korian – has sold its UK activities and assets to UK investment fund Elevation Healthcare Properties for £207 million (approximately €243 million).

Clariane’s UK interests comprised 805 beds in 12 care homes acquired between 2020 and 2022 and which, with one exception, it owned outright. The platform generated sales of £55 million in 2023 with an EBITDA of £12 million.

The homes were operated by Berkley Care, a company acquired by Clariane in 2021. Berkley Care’s leadership has simultaneously acquired the company from Clariane and Elevation has leased back 11 of the properties to Berkley on inflation-linked, long-term leases.

Elevation said that the deal cements and expands EHP and Berkley Care’s existing relationship.  Berkley Care is a highly-regarded operator of 12 modern award-winning prime care homes across England comprising 805 high-quality beds.

“We carefully select operating partners who are proven to create best-in-class care home environments, have an excellent record in care and can evidence a positive impact on their respective local communities,” Elevation managing partner Andrea Auteri said. “We are delighted to extend our relationship with Berkley Care who are a certified top employer and are committed to continuously evolve and improve their environments and practices for staff, residents and communities.”

The deal, which will close within weeks, as part of Clariane’s plan to strengthen its financial structure and is part of a program of disposals of operating and real estate assets and capital partnerships intended to release €1 billion to reduce debt and leverage.

The full net proceeds from this sale, after repayment of the real estate debt lodged in the UK of £38 million and the €90 million of real estate partnership with Predica in form of bonds redeemable in shares, will be used for the repayment of approximately €100 million of the Group’s outstanding debt.

A provision of -€40 million for impairment has been recorded in the 2023 financial statements in corresponding to the difference between the sale price and the acquisition value of the assets

Clariane CEO Sophie Boissard said: “With this first transaction, and the sale of six property assets in the Netherlands announced on 5 February, we are demonstrating our ability to rapidly implement actions to reduce our debt in order to strengthen our financial structure.”

EHP, which owns 40 UK care home properties providing over 2,700 beds and operated by nine different operators, was advised by CBRE, Akin Gump, Pinsent Masons and Deloitte on this transaction.

Author: Paul Strohm

Source: Real Asset Insight