Eversheds has advised NHP on its acquisition by US private equity firm Formation Capital, global investment firm Safanad and healthcare turnaround specialist Court Cavendish.
NHP, is one of the largest owners of care homes in the sector, owning 275 nursing and residential care homes, representing over 12,500 beds in the UK. The portfolio includes the 226 care homes that are operated by HC-One, which was created in November 2011 as an NHP subsidiary to encompass the properties transferred to NHP following the collapse of Southern Cross. Turnaround firm Court Cavendish, founded and chaired by Chai Patel, was appointed to manage HC-One.
Eversheds has advised NHP for a number of years and acted on behalf of the company to deal with its real estate assets as part of the complex disposal process. Approaching this large due diligence project in the most efficient and cost effective way, the firm took an innovative approach by creating a bespoke insurance solution, working closely with insurers. This is a model commonly used in the US, and avoids a lengthy due diligence process on each property.
The Eversheds team was led by Nancy Brown, Partner and head of the Manchester Real Estate group, working alongside Freshfields Bruckhaus Deringer, who led the commercial aspects of the project.
Nancy Brown commented:
“We are proud to have advised NHP, our long standing, key client in the care home sector in this market leading transaction. It is extremely positive to see US investment, through an investment of long term capital and sector experience, into the UK’s care home sector which will improve quality, efficiency and service to ultimately benefit care home residents. This deal will be of great interest to the care sector as a whole.”
Jeremy Jensen Chief Restructuring Officer and Partner at Aaronite, said:
“This has been one of the most difficult Turnarounds in the sector. The contribution of Nancy Brown and her team at Eversheds on this transaction has been outstanding, and we look forward to working with them again.”
