Safanad and Formation Join with Court Cavendish to Acquire NHP

November 3, 2014 – NHP has today announced that Safanad in partnership with Formation Capital and Court Cavendish, the healthcare turnaround specialist and the management team at HC-One, have signed a binding commitment to acquire NHP. The deal is expected to complete in November 2014.

NHP, which comprises 273 Freehold care homes, including the UK’s third largest care provider HC-One, will be acquired for £477m. This brings total recoveries to creditors to £507m over the last 5 years as NHP has sought to realise value for its lenders through the sales of assets.

Since 1999, Formation Capital and its investors have invested over $5.5 billion of capital across the continuum of care in the senior housing sector.  As part of this history, Safanad and Formation Capital have acquired over $3 billion in senior care assets since its strategic partnership in 2009.  Safanad is a global investment firm that invests in real estate, private equity and public markets. The firm seeks to identify investment opportunities primarily within the healthcare, education, financial services and retail sectors.

The new partnership has been created with a view to consolidating HC-One’s rise, which now sees it as a provider with above average levels of occupancy. The new organisation is planning to acquire further homes and diversify the care provided to include retirement villages, residential, nursing and home care – so becoming an integrated health and social care provider working in collaboration with public sector commissioners to deliver high quality and cost effective services.

The sale represents a fantastic development for HC-One’s residents, staff and relatives as the new owners plan to invest further in ensuring HC-One continues on its journey to provide the kindest possible care.

Steve Fishman, President and Co-Chairman of Formation Capital said:

“HC-One has come a long way since Court Cavendish stepped in to rebuild the operations. Dr Chai Patel, his management team and staff have worked exceptionally hard to bring a new focus in the organisation around care for residents. The transaction brings an end to the uncertainty HC-One has faced, enables significant new investment and consequently allows the HC-One team to better serve residents and their families. Our investors and partners bring long term capital and significant experience of investing in this sector. Our goal is to enable the continued development of the estate, and development of the HC-One team to the benefit of residents and broader stakeholders.”

Kamal Bahamdan, Founder and Chief Executive Officer of Safanad, said:

“We are pleased to have expanded on our successful US partnership with Formation Capital by jointly establishing a healthcare platform in the UK market, and especially encouraged to have equity partner Dr. Chai Patel and his team at Court Cavendish as part of our strategic vision to further build on this opportunity.”

Dr Chai Patel, Chairman of Court Cavendish and HC-One, said:

“We are the absolutely delighted to have formed this new partnership with two organisations that have such an outstanding track record in care. For our residents, relatives and our staff, this is a fantastic step in ensuring HC-One continues on our journey to provide the kindest possible care.”