Caring bank cut the debt in half
A MAJOR care home employer in the Tees Valley has been saved from near certain bankruptcy.
RBS bank stepped in to halve Four Seasons Healthcare’s £1.55bn debt in a debt-for-equity swap yesterday in a move that looks likely to secure hundreds of local jobs. Four Seasons operates 12 homes and three special centres in the Tees Valley.
Meanwhile, Middlesbrough care home entrepreneur Steve Metcalf has bought White House Care Home in Stockton for an indisclosed sum. The deal secures 25 jobs and accommodation for up to 29 residents.
North-east law firm Gordon Brown Associates advised on Mr Metcalf’s first acquisition after the opening of Briarfield House in Redcar, which employs 10 staff.
The purchase follows a long running and ultimately fruitless battle for planning permission to build a 30-bed extension at the Redcar home.
Mr Metcalf said: “After we were unable to extend Briarfield House care home we began looking at opportunities to expand our portfolio. The White House Care Home is well established and has a good reputation in the area. We are looking forward to taking the business forward and providing the best quality care for our current and new residents.”
According to specialist property agents Christie & Co, care home values fell by nearly 17% last year. It said although tighter lending had affected some larger property deals, the market for single asset and small portfolio transactions remained strong.
