Alpha Real Capital

The Challenge

Gerald Eve were instructed by Alpha Real Capital to provide due diligence and valuation advice on their proposed acquisition of a forward funded investment in a new care home in Nottinghamshire. The site had planning permission for a new state of the art 70 ensuite bedroom care home with a pre-let in place for a new 30-year lease to a leading care operator.

The Solution

Our advice included an analysis of asset quality; an assessment of supply, demand and competition factors within the catchment including demographic forecasts and future pipeline developments; a review of the lease terms and appropriate due diligence on the tenant’s covenant strength. Based on this research and our knowledge and experience of the operational care home market we provided an assessment of the trading potential of the proposed care home.

Gerald Eve’s preliminary due diligence advice assisted our client on appropriate pricing of the investment and our subsequent purchase report and valuations supported the acquisition through the decision making process.

The Result

With the support of our advice, Alpha Real Capital successfully completed on the forward funding purchase of the investment. We provided objective, independent advice supported by our in depth market knowledge and experience of the care home sector.