Speechly Bircham is delighted to have advised established client Caring Homes Group on a transformational corporate structured deal with Griffin-American Healthcare REIT II to dispose of and lease back 44 freehold elderly care properties for a total consideration of £298.5m, to clear Group bank debt and to secure the provision of up to £75m in specific development finance.
Under the deal Caring Homes Group, which is the trading name for Myriad Healthcare, has agreed to sell a subsidiary owning 44 freehold elderly care properties to Griffin for a total consideration of some £300m. Those properties will then be leased by Griffin to Myriad under 35 year leases.
The transaction involves an innovative long term collaboration between Myriad and Griffin that secures the maintenance and enhancement of the existing portfolio, the development of new homes and expansion of the portfolio as well as, in appropriate circumstances, the substitution of properties. Specifically, Griffin is providing an initial facility of up to £75m in development finance to fund five of Myriad's current development opportunities, providing 250 new beds as well as significant investment for strategic capital expenditure to enhance and maintain the existing homes. On completion of the transaction the Group's net assets will increase to approximately £120m.
The team was led by corporate partner Martin Wright assisted by senior associate David Coates and a large team of solicitors across several specialist divisions including Mark Smith and John Aynsley (Property), Daniel Sullivan (Banking) and James Carter and Louise Pike (Tax).
Commenting on the deal, Martin Wright said: "This was a deal structured by clients who have many years of experience in the healthcare industry and brokered by JLL Corporate Finance who have excellent links with the US Healthcare REIT community. We are delighted to have advised Myriad on such a significant deal, one that establishes a robust basis for Myriad to maintain and develop its portfolio over the years to come. It was a complex transaction, requiring close collaboration to find innovative solutions both across the disciplines at Speechlys and also with BDO, who advised on tax and structuring."
Acting for Myriad in this transaction means that Speechly Bircham has again been involved in one of the largest deals this year in the healthcare sector, following our engagement last year to advise Harmoni, the largest independent provider of health and social care services, on its sale to Care UK.
Paul Jeffery, CEO of Myriad said:"This was an important transaction for the Group, establishing the platform upon which we will maintain and grow our business for the foreseeable future. The Speechlys team played a key role in shaping the deal and getting it over the line. Having worked with them now for a number of years, we have come to value both their technical expertise and their commercial knowledge within the healthcare sector. We look forward to continuing the relationship".
Griffin were advised by Berwin Leighton Paisner (led by Michael Anderson and Candice Blackwood) and by Atlanta firm Arnall Golden Gregory (led by Steve Kaye). Bank of Scotland were advised by Hogan Lovells (led by Tom Whelan).
