Partner Article

New company to boost care home investors return

A North East consortium has launched a new company which aims to help new investors to break into the £10bn private care home market.

Newcastle-based Associated Care Facilities (ACF) is targeting investors looking to establish or acquire care homes, and existing care home owners who want to maximise efficiency and profits.

The firm is made up of a multi-disciplinary group of architects, investment funding consultants, IT and cost management experts, land acquisition professionals and experienced care home owner-managers.

Director Eric Dixon, said: “We saw a gap in the market for a business aimed at two potential client streams, the first being new investors who want a good return on their money and need partners with in-depth knowledge of this very specialised sector.

“Our second target is care home operators, either those with smaller homes who need to see a better profit in what are tough trading conditions, or those with bigger homes or chains who find it more cost effective to sub-contract some of their services.”

Studies show that the care home market is booming, with three quarters of people likely to need some form of social care during retirement, and predictions that an extra 50,000 places will be needed in the next decade.

The new breed of private care homes offer on-site facilities such as bars, cinemas, internet cafes, and beauty salons, all driven by resident demand.

He added: “There are more people now paying for their own care than those funded by local authorities or the NHS and they expect more choice, higher standards, and greater engagement in their care, which is all having an effect on the sector and the profitability of care homes,”

This was posted in Bdaily's Members' News section by Ruth Mitchell .