Patron Capital Partners has sold its Gracewell Healthcare business for a consideration of GBP153 million.
The company’s portfolio of 11 senior housing communities has been acquired by Health Care REIT, and the management company has been acquired by Sunrise Senior Living.
Patron’s investment in the business and the purpose-built, luxury private-pay portfolio began in 2010; the Gracewell portfolio comprised 767 units, concentrated in Southern England, and focused on the high quality, private fee paying market.
Patron will continue as a partner with Health Care REIT, Sunrise Senior Living and Gracewell’s founders – Tim Street and Daniel Kay. It is expected that the new partnership will pursue at least five properties per annum focusing on premium seniors housing communities. The partnership is founded on the redevelopment of one community in the portfolio and a near-term existing development pipeline of 11 additional homes with 812 units located primarily in Greater London and Southern England.
Keith Breslauer, Patron Capital’s managing director, says: “This transaction demonstrates both our development and operating expertise in creating a leading healthcare company. It is an industry we believe in and are committed to; Patron’s strategy is to invest a further GBP200 million in this asset class, in the care homes business, the healthcare industry in general, as well as our specialty care business, Badby Park.
“For all our stakeholders, this transaction represents an excellent outcome - for our clients, we have partnered with a leading luxury care home provider, with a focus on quality of care; Patron now has the opportunity to continue to develop its interests in this sector more rapidly by working with a first-class partner so that we can grow together; and, for investors in our earlier funds, we have yet again demonstrated our ability to deliver excellent returns.”
Tom DeRosa, Health Care REIT’s CEO, says: “This new partnership brings together the development expertise of the Gracewell team, the operating excellence of Sunrise, and the strategic capital of HCN. We are pleased to expand our relationship with our largest operating partner by building on our leading position in the highly attractive Greater London and Southern England markets.”