Ladhar secures funds to build more care homes

Aug 12 2009 by Andrew Mernin, The Journal

PUBS operator Ladhar Group has welcomed signs that banks have finally returned to lending after securing £10m to fund its ambitious plans for growth in the care homes sector.

The company, based in North Shields in North Tyneside, has secured the funding package with the Co-operative Bank as it looks to initially double the number of residential care beds it operates to 800, with more ambitious plans to follow.

The firm currently has a diverse portfolio of businesses including 64 pubs and clubs, a dozen cafes as well as lap-dancing bars.

It owns a handful of care homes in the North East alongside one it opened last year in Doncaster, and has recently acquired a number of sites across the North to expand its portfolio.

Its long-term goal is to develop a care and residential homes portfolio of 20 properties while it believes there is still room for growth in the leisure market.

Finance director Craig Bell hailed the reopening of bankers’ lending books as a sign of brighter times ahead.

He said: “We are seeing banks starting to come back to lending and we had quite a bit of interest from banks looking to lend the money to us [for this round of funding].

“We had interest from two or three banks – that’s a positive sign which a year ago wouldn’t have happened.

“Over the last 12 months we have bought a number of freehold sites in and around Yorkshire and the North East and this gives us the development funding to start building on the sites.”

The Co-operative Bank will also be involved in the expansion of the group’s learning disability division, Flexible Support Options (FSO) which now operates countrywide and recently opened an office in London.

Ladhar currently employs around 1,800 people, including 600 in its care homes division and 300 at FSO.

The legal work for the Ladhar Group for its latest funding facility was carried out by Sintons, with a team of property, construction and banking lawyers led by Partner Chris Welch.

Mr Welch said: “This was an important transaction for our client in what are challenging times for all borrowers. We are delighted to work with the Ladhar Group on the development funding for the group and the potential future developments as the group continues to expand both regionally and further afield.”