ENCOMPASSING THE HEALTHCARE SECTOR
Whether you are an existing operator looking at the refinance and expansion of your care group or a new entrant looking at the acquisition of your first home, Montane Finance will be on hand to support you through your journey.
With an ever increasing demand coming from an ageing population, the UK healthcare sector looks set for continued growth.
The care sector has continued to see a surge of investment into the new, purpose built developments allowing for greater economies of scale.
The direction from CQC (Care Quality Commission) continues to place importance on operators providing acceptable accommodation with truly fit for purpose facilities now a requirement.
With the ‘private paying’ market on the increase, there is a drive from existing operators to extend, refurbish and improve the quality of their facilities.
For the Regional operator there is a growing opportunity in the market, given the increasing requirement for beds in the UK especially given some of the high profile corporate disposals which have occurred over the previous 12 months.
Along with staffing costs, addressing the deficit in the number of nurses currently available in the UK, looks set to continue to be one of operators biggest challenges.
There is a substantial disparity between various lender’s appetite in care. With this in mind, the process of obtaining access to multiple lenders has never been so important.
Key factors to the success of your application may include the following:
Are you an existing operator, do you have the skill set to manage/operate the target business? Is there a credible management team in place? This will be vital for new entrants
You can expect to see a LTV (Loan to business value) ratio of between 60 – 75%
Can the target business support the proposed commercial mortgage?
A ratio of 4- 5.5 x multiple of (ANP) Adjusted Net Profit will typically be used by lenders
What is the current rating of the home? Reputationally, this is a vital component