SOLD OUT! Bilberry Gardens Care Home
Dementia care homes are so popular that our last two projects sold out in just a few weeks. If you’d like to invest into the mega-trend of the ageing population while helping solve a real social need, you will have to act quickly.
Our latest passive income investment opportunity is Bilberry Gardens (left), a purpose built 39 bed facility set over two stories in enclosed gardens and rated ‘Good’ in all categories by the Care Quality Commission.
It is the 13th project we have worked on with this partner who now have 15 homes and 833 beds in their portfolio.
Benefits of this investment:
- 8% rental income in years 1 to 5, rising to 9% in years 6 to 10 and 10% in year 11 onwards
- A 25 year leaseback agreement with break clauses at years 10, 15 and 20.
- Quarterly rental income payments
- Assured buy-back from developer for 115% of your initial capital after 10 years, 120% after 15 years and 125% after 20 years.
- 125 year lease with full legal title.
- Multiple exit strategies including selling on the open market or back to the developer.
- Fully built and operational so your lease can be registered immediately.
An Investor Speaks:
“What attracted me to the care home investment was the high returns, the fact that I own a piece of real estate and knowing what my exit will be right at the start. It has been an easy investment process and my cousin has been so impressed with it that he has also decided to invest”
Facts And Figures – Our partner’s Portfolio
- 850,000 people in the UK suffer from dementia, rising to 1 million by the end of this decade.
- There is typically only one dementia care bed available for every four that are needed.
- Many current care homes do not meet the latest EU and Care Quality Commission regulations on size and equipment.
- This company’s strategy is to own and operate care homes in the North and North West where land is cheaper but care fees remain relatively high.
- Private room buyers provide cheaper finance than the banks and more stability as no single institution has control over the financial future of the project.
- The suite value is £65,000 and you receive £5,200 per annum in years 1-5, £5,850 in years 6 to 10 and £6,500 from year 11 onwards. Your rental income continues each and every year all the way to year 25 unless you trigger a break clause at years 10, 15 or 20.
- The company behind the care homes is relatively young but is growing fast. They have a unique financial strategy which makes their cost of capital average 6%
- This is the 13th project we have worked with them on using this investment model.
- Each client receives full legal title and a 125 year lease registered at H.M. Land Registry.
- An independent law firm has produced a report validating the company’s approach.
- The care provider has met CQC standards in 5 separate regions and has a high calibre management team in place
- The first year’s accounts for the company are now available showing high profitability and a strong balance sheet
Risk Factors And Mitigation
- Change in policy of local authorities to paying care fees. Unlikely as they have a legal duty of care and those with severe dementia and nursing needs require 24/7 care in a dedicated facility.
- Poor standard of care is unacceptable. Feedback from existing operational sites is positive, with Bilberry Gardens rated ‘Good’ in all 5 categories by the Care Quality Commission.
- This is the 13th operational care home project to be funded by the company on this basis. As the operational portfolio grows they have a stronger cash flow and profitability to make the group more sustainable for the long term.
- 90% of operational profits are passed back to the property company, covering rent payments to clients and strengthening its balance sheet. 10% of profits are retained for continual improvement of the care home.
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