Vincents supports CPM Care with refinance and acquisition
Lancashire care home operator CPM Care has expanded with the acquisition of its third care home.Vincents Solicitors advised on the £700,000 purchase of the 15-bed Breck Lodge in Poulton-le-Fylde.
Malcolm Glynn, Vincents head of commercial property, also supported the £3m refinancing agreement which saw CPM Care move its facilities from RBS to Lloyds Bank Commercial Banking.New terms have seen the firm’s monthly repayments reduce significantly freeing up capital to support future acquisitions.
Owners Claire and Peter McGailey opened their first care home, the 41-bed Lyngate in Bolton, in 2008. Formerly a nurse and police officer, the pair opened their second a year later, the 33-bed dementia specialist Haddon Court care home in Bispham.Following the acquisition of Breck Lodge, the couple intend to continue to grow the business to build a portfolio of around six to eight homes in the next six years.
Peter said: “We knew the Breck Lodge well and when it came to market we felt it would make a great addition to our portfolio. We’re pleased to be working with the existing staff, some of whom have been with the business for many years, and bring our brand of care to the residents. Happily there has been no disruption to them during the transition but we’re hoping they will soon start to notice the changes as we introduce the new therapeutic activities and fresh approach to care that has proven so successful for residents at Lyngate and Haddon Court.”The refinancing was agreed with the Lloyds Bank Commercial Banking specialist healthcare team. Peter added: “We’re pleased to have made the move to Lloyds Bank which has been helpful and supportive throughout the refinancing.
"When we needed to instruct a solicitor I rang several large firms, including Vincents. I was impressed not only by Vincents' speed of response but that I was able to speak to the head of commercial property personally and he had an answer for me straight away. Malcolm understood exactly what we needed and was able to guide us through the process. In my business, personal contact is incredibly important and I was glad to see Vincents following that same ethos.”CPM Care has also chosen to work with the Vincents employment legal team to oversee matters in relation to its 100-strong staff.
Malcolm Glynn, Vincents’ head of commercial property, said: “The refinancing and acquisition are an important step in the right direction for CPM which is a company with clear potential for growth. We have an aging population and the care sector offers huge opportunities for those with the right combination of business acumen and a caring approach. Building on the achievement of these two important milestones, and with the experience and expertise of Claire and Peter and their dedicated team, the company now has the ability to achieve its ambitions.”
Franco Fratazzi, specialist healthcare banking consultant for Lloyds Bank Commercial Banking, added: “The key to supporting a large refinance and purchase like this was working closely with Claire and Peter from the start, which gave us a full understanding of the business and their future plans. This helped us to put together a package that best suited their needs, and by using the Government-backed Funding for Lending Scheme we were able to offer a one per cent discount on the loan.”