CVM sells care homes

Close Venture Management Limited (CVM) has sold its interests in Applecroft Care Home Limited (Applecroft) and Barleycroft Care Home Limited (Barleycroft) to its partner in the investments.

CVM managed the investments on behalf of Close Brothers Venture Capital Trust plc, Close Brothers Protected VCT plc and Healthcare & Leisure Property Fund plc. As part of the sale all outstanding loan stock has been repaid to the funds. The exit has delivered an IRR in excess of 20% on the total investment of £9.1m made in the summer of 2003. Similar to the other asset based investments in the three funds’ portfolios, both companies had no bank debt and owned a significant amount of freehold property, thus reducing investment risk.

Applecroft is a 75 bed purpose built care home in Dover, Kent. Barleycroft is an 80 bed purpose built care home in Romford, Essex. Both homes provide a high standard of care for the elderly in modern single room accommodation.

Emil Gigov, director of CVM, said: “We are very pleased with the return achieved on the investment in Applecroft and Barleycroft. Over the past 10 years we have made a number of successful investments in businesses with a heavy asset base, principally in freehold property, and delivered a superior return to our shareholders. We are actively investing in such opportunities in a variety of sectors including mainstream and specialist care homes, hotels, cinemas, health and fitness clubs and pubs.”