Four Seasons Health Care Group has sold 46 care homes to global real estate investment trust Omega Healthcare Investors for £241 million.
All of the care homes are freehold and are located across England, Scotland and the Channel island of Jersey. Six operators will now run the care homes, which had all traded under the Four Seasons Health Care or Brighterkind brands.
CBRE advised Four Seasons Health Care.
US investor Omega listed the sale in its the first quarter of 2025 report today saying it had leased them to the operators at an annual rent of £25.9 million and annual escalators of 1.7% that ultimately increase to 2.5% after year five.
The sale forms part of an ongoing restructuring of the Four Seasons Health Care business as it maximises returns for its creditors. A core portfolio sales process originally comprised 111 freehold care homes. It completed the sale of 57 care homes in 2024.
Four Seasons Health Care was placed into administration in 2019. The debt-loaded business had 322 residential and nursing care homes in the UK.
The prior year the group’s journey to administration had seen US hedge fund H/2 Capital Partners hoist a for-sale sign over the business, which was owned by Guy Hands’ Terra Firma, after it failed to make a £26 million interest payment on its emergency £70 million super senior term loan. Four Seasons then had more than 13,000 residents.
Terra Firma had refinanced Four Seasons Health Care in April 2012, valuing the care home business at £825 million, with a £525 million two-tranche senior loan underwritten by Goldman Sachs and Barclays which was be exited through a high yield bond issuance.
Sarah Livingston, head of healthcare at CBRE said in a statement: “This is a landmark deal for the sector, and our appointment as sole sale side advisor demonstrates our ability to provide strategic advice, built on our deep sector expertise and our track record on transactions of this scale.”
Tom Morgan, head of operational real estate at CBRE added: “The care homes are strongly positioned with excellent care quality, with a significant proportion of the assets being purpose-built. This presented a compelling opportunity for investors to acquire a high-performing portfolio, both from an operational and financial perspective.”
Joe O’Connor, chief executive of Four Seasons added: “This was a complex process with many moving parts.”
Christie & Co acted as agent for the purchaser.