Teamwork leads to successful £5m refinancing of care home business

The Wye Valley’s real estate finance team and corporate team pooled their talent and expertise recently to get a high value refinancing deal over the line in a matter of weeks.

HCR were instructed by a bank in connection with a refinance of seven care homes with a total loan value of £5m. The deal involved bringing the ownership of the care homes from offshore to the UK by way of the acquisition of the entire share capital of the property owning company from a British Virgin Islands (BVI) company to a newly incorporated UK based property holding company.

Time was of the essence and the deal needed to be completed within a matter of weeks.

Clare Day, head of the real estate finance team, carried out the necessary due diligence on the property portfolio, ensuring the properties were good and marketable and that the bank would take a first legal charge. Alongside Clare, our corporate team, headed by Arpinder Dhillon, advised on the share purchase agreement and ownership structure of the target company and holding company.

By working together, the two teams ensured that all of the bank’s conditions for drawdown of the loan were satisfied and the bank’s investment was adequately protected within the agreed timescales, enabling the parties to meet the target completion date.

Paul Howard, Regional Director West & Wales at Cambridge & Counties Bank, said: “We were delighted to support with this highly competitive financing deal. It was a real advantage to have the combination of expertise in one place, making the whole process much smoother for us and all the parties involved. Helping successful management teams such as this is central to Cambridge & Counties’ business model and relationship-based customer approach.”