Downing Crowd launches £3m bond for care home developer

Investment platform Downing Crowd has launched a £3m bond for care home developer, Magnus Care Group.

Downing Crowd is part of London-based investment manager Downing LLP, which has been investing in a wide range of UK business sectors, including healthcare and renewable energy, since 1986.

Julia Groves, Head of Downing Crowd and Partner at Downing LLP, said: “The Downing team has honed real expertise in the care sector, having invested in our first care home back in 1998. We have developed and invested in care homes across the UK and are delighted to add to our portfolio with Magnus Care Group. Our success in this area of the market is also demonstrated by our recent exit from five care home projects in March 2018.

Story continues below

Advertisement

“Our constant focus is always on finding high quality residencies and care facilities in the sector, with the aim of ensuring the best possible outcome for care home residents, staff and our investors.”

Having recently acquired Bothwell Castle, a newly developed care home in an affluent suburb of Glasgow, Magnus Care Group plans to work with care home provider Care Concern to acquire further resident care homes, with two additional locations already in the pipeline. Magnus Care Group will focus on refurbishing properties, enhancing standards of care and increasing bed occupancy where appropriate.

The bond provides investors with a 7% pa fixed return, plus the potential of added equity. The bond is also asset-backed, which means that Downing will have first-charge security over the bricks and mortar of Magnus Care Group’s care homes and other assets.

The team behind Magnus Care Group previously developed a portfolio of care homes with Downing managed funds and had a successful exit in spring 2018, achieving an attractive rate of return for investors.