Hogan Lovells Advises Schroders on Suffolk Care Home Forward Fundings
04 February 2013
LONDON, 4 February 2013 - Hogan Lovells advised the Schroder UK Property Fund on the development and leasing of five care homes in Suffolk. The deal was signed on 20 December 2012.
Schroders will acquire freehold sites in Framlingham, Haverhill, Mildenhall, Lowestoft and Ipswich from Care UK, who will then redevelop them (with funding from Schroders) as residential care homes and take a 30 year lease to occupy and operate them.
These homes, some of which are existing operational homes that will be redeveloped, while others are former school sites, will be used by Care UK to support the contract it entered into with Suffolk County Council in November 2012 to outsource the Council's elderly care provision.
Hogan Lovells advised Schroders on all elements of the deal, including a contractual and security package designed to offer as much protection as possible against a Southern Cross-style insolvency.
The Hogan Lovells team comprised Dion Panambalana, Simon Keen and Daniel Norris, with support from Gillian Thomas, Andrew Welbourn, Cheryl Enayati and James Larmour.
Commenting on the transaction Dion Panambalana said:
"We are delighted to have advised Schroders on this complex transaction. Care home transactions are not straightforward, particularly after Southern Cross, but also because of the political and regulatory environment in which they exist. The Suffolk County Council outsourcing added an extra layer of complexity as well. Hogan Lovells' real estate, construction, banking and projects teams worked effectively and pragmatically to document these complex arrangements."
Wedlake Bell, Nabarro and K&L Gates acted for Care UK.