Care Home, Greater Manchester 10% Assured Returns for 10 Years Purchase from £51,000 cash input Clifton Moor Care Home 2 Clifton Moor Care Home Clifton Moor Care Home offers the opportunity for individuals and businesses to purchase bedrooms within this highly sought after highquality nursing and dementia facility in Greater Manchester. With 76 beds, Clifton Moor will quickly become a necessity for local authorities and primary care commission teams. Highlights • 10% Assured returns for 10 years • Purchase Price £85,000 • Assured 125% (£106,250) Developer Buy-Back after 10 years As an exclusive offer, the developer has agreed to increase the deferred funding option to 40% of the purchase price allowing for individuals to purchase whole rooms from as little as £51,000 cash input. Exclusive Offer • Limited rooms available for £51,000 cash input on this offer • Interest free developer-deferred payments up to £34,000 3 £85,000 - Full cash input By purchasing with a full cash input option, you benefit from an annual fixed rental income being paid from year 1 onwards. Cash input £85,000 x 10% = £8,500 x 10 years = £85,000 Purchase price Client cash input Reservation fee Balance of cash deposit Assured tenancy period Income circa No. years cash deposit No. years full purchase price Year Buy-back option at year 10 = £106,250 (125%) ROI = (Buy-back £106,250 + Cash rental _ income £85,000 (minus) Initial cash input £85,000) ÷ Initial cash input £85,000 = 125% ROI: Return on investment 4 £85,000 £85,000 £500.00 £84,500 10 years 10% 0 10 Rental income (circa 10%) 1 2 3 4 5 6 7 8 9 10 Total £8,500 £8,500 £8,500 £8,500 £8,500 £8,500 £8,500 £8,500 £8,500 £8,500 £85,000 Buy-back @ 125% Total purchaser returns Less cash input Cash received over and above initial cash input £106,250 £191,250 £85,000 £106,250 ROI: 125% £51,000 - Developer-deferred facility By purchasing with the developer-deferred option, you are able to offset your total capital outlay from £85,000 to £51,000 by deferring £34,000 against your fixed annual rental income. In Years 1-3, you receive 10% of the cash input value (£51,000), giving you a fixed return of £5,100; this is then drawn down to service the deferred amount. In Years 4-10, you receive 10% of the full purchase price (£85,000), giving you a fixed return of £8,500; £2,671.43 of which is then drawn down to service the deferred amount. Fixed _ returns £74,800 (minus) deferred £34,000 = £40,800. Buy-back at year 10 = £106,250 (125%) ROI = (Buy-back £106,250 + Cash returns _ £34,000 (minus) Initial cash input £51,000) ÷ Initial cash input £51,000 = 188.33% ROI: Return on investment Year Purchase price Client cash input Reservation fee Balance of cash deposit Assured tenancy period Income circa No. years cash deposit No. years full purchase price £85,000.00 £51,000.00 £500.00 £50,500.00 10 years 10% 3 6 Rental income DeveloperBalance of Developer(circa 10%) deferred facility client rental deferred repayments income facility balance 1 2 3 4 5 6 7 8 9 10 Total £5,100.00 £5,100.00 £5,100.00 £8,500.00 £8,500.00 £8,500.00 £8,500.00 £8,500.00 £8,500.00 £8,500.00 £74,800.00 £5,100.00 £5,100.00 £5,100.00 £2,671.43 £2,671.43 £2,671.43 £2,671.43 £2,671.43 £2,671.43 £2,671.43 £34,000.00 Buy-back @ 125% Total purchaser returns Less cash input Cash received over and above initial cash input £106,250.00 £147,050.00 £51,000.00 £96,050.00 ROI: 188.33% £5,828.57 £5,828.57 £5,828.57 £5,828.57 £5,828.57 £5,828.57 £5,828.57 £40,800.00 £34,000.00 £28,900.00 £23,800.00 £18,700.00 £16,028.57 £13,357.14 £10,685.71 £8,014.29 £5,342.86 £2,671.43 £0 5 The United Kingdom Rich in history, culture and natural beauty, the UK has many qualities to attract investment of any nature. The United Kingdom is one of the world’s economic leaders and a member of G8. The country is also a founding member of both the UN and NATO and generally regarded as a safe and solid country in which to buy property. Historically, UK property prices have doubled every 10 years. The UK is currently coming out of a period of low prices and recession which has indicated that property prices are set to increase dramatically, with current predictions suggesting a looming property boom across the whole of the UK. 6 “ An investment into UK property at this time allows for maximum capital appreciation as the country recovers from recession and house prices increase.” Gavin Woodhouse, MBI Consulting UK Ltd (Clifton Moor Developer) 7 The Care Industry in the UK Clifton Moor Care Home is servicing a growing demand created by a necessity for high-quality nursing and dementia care facilities both locally and nationally. A specialist Care Home Construction Market Analysis commissioned by MBI Consulting UK Ltd (project developers) and conducted by AMA Research is available on request. The UK’s average population is getting older and care for the elderly is already worth £14.5 Billion to the economy every year (AMA Research Ltd), the majority of which is funded by the government. Estimates from the Office of National Statistics (www.ons.gov. uk) suggest that 1 in 4 people will be aged 65+ by 2050, representing a 56.3% increase from 2012, and a total of 8 million people will be aged 80+ by the same year. This report outlines activity within the UK Care Home market, including supply and demand as well as upcoming regulatory reforms, along with other aspects of the industry. A summary of their findings is thus: In a study by the UK Government it was confirmed that 215,000 people were in residential care – 124,000 of which were local authority funded and 81,000 in self-funding care. 8 Future care home demand is expected to increase by approximately 40,000 new places by 2020. During this period, independent sector provision is expected to increase as demand for public sector places declines. Following recommendations made in the Dilnot Report, funding reform for adult social care will be implemented under the Care Bill in 2016 and includes a cap on the amount an individual will have to pay to meet their assessed social care needs during their lifetime – to be set at £72,000. Much of the existing care home stock is substandard and requires further investment and expansion over the coming years to meet CQC guidelines. Source: AMA Care Home Construction Report 2013-2017 £14.5 16.4% B i l l i o n of revenue generated through the care home industry in the UK every year. the UK population is currently over the age of 65 years old. 1 in 4 8 Million People in the UK will be aged 65+ by 2050. people in the UK will be aged 80+ by 2050. 9 Greater Manchester Spanning almost 500 sq miles in the North of England, Greater Manchester includes such vibrant boroughs as Manchester, Salford, Bolton & Wigan. 10 Dovestone Reservoir, Oldham As recorded in the 2011 census, the population of the county was 2.68 million and growing; of this total, 389,749 are aged 65+. Source: 2011 Census Away from the main city centres, the population is much older. In Wigan alone the population of people aged 85+ has increased by an astonishing 24% since 2001. Central Manchester Tyldesley Tyldesley is a town within the Metropolitan Borough of Wigan in Greater Manchester, which occupies an area north of Chat Moss near the foothills of the west Pennine Moors. The main surrounding towns include Wigan (7.7 miles to the west), Bolton (5 miles to the north) and Manchester (9 miles to the west). Wigan Council have well established links with NHS primary health commissioning in the area and are regarded as one of the best councils in the UK for health & social care commissioning. The research conducted by Wigan Council indicates that from their current 300,000+ population, 9.5% suffer from a long term disease or illness, who will require residential nursing care of some description. The area is rich in country parks, flowing streams, and green fields which create the picturesque landscape surrounding Clifton Moor. There are 7 care services within a 10-mile radius of Clifton Moor Care Home, 3 of which are currently failing on one of more CQC standards. Source: UKCASS Report - Clifton Moor Care Home 11 12 Clifton Moor Care Home Clifton Moor Care Home offers a high quality of care services for residents throughout its 76 bedrooms. The on-site Hair & Beauty Salon offers residents the opportunity to be pampered by the trained staff. The care home will be completed to dementia standards with all rooms comfortably exceeding the current government sizing guidelines for rooms of this type. All bedrooms are fully furnished and include: • Purpose-built bed • High-back comfortable chair • Wardrobe, Chest of Drawers & Bed Side Table • Flat Screen TV • Nurse Call System • Telephone and Internet facilities • Neutral Decor to suit residents’ own furnishings There will be 8 large and comfortable lounge areas for residents to relax in as well as 5 dining areas. Clifton Moor Care Home also includes a coffee lounge, craft room, internet cafe and therapy room to enhance the experience of all residents. 13 Inovative Design by “ The proposed site is bordered by Alma Street to the east and Elliot Street to the north. The southern boundary has an open aspect over former railway sidings and green space whilst the western boundary is adjacent to domestic gardens. The site was originally home to Dean’s Reed Works, a factory making reeds and healds for looms in the local cotton mills. The area has an industrial heritage which has been slowly eradicated as time has passed. The historic maps show a series of industrial uses around the site and the area was characterized by cotton mills, engineering works and the railway serving the local colliery. All are now gone and the only faint traces remain in the landscape. 14 The design for this new facility has been carefully considered and is a direct result of the detailed analysis of the site and its history. The design concept that we have pursued is that of a modern, thermally efficient care facility gathered around a central courtyard garden which is accessible from all parts of the building. All bedrooms have been carefully placed to ensure that residents have views of either the gardens or the green space to the south. No bedrooms look out onto surrounding streets. All external faces of the building adjacent to Elliot Street and Alma Street are populated with public spaces rather than private rooms to ensure privacy for all residents. This also ensures that the courtyard garden becomes a peaceful and safe haven for both residents and staff. The external appearance of the building is contemporary in style but picks up references from the buildings around the site in its use of brick and render, whilst the metal pitched roof is a reference to the industrial legacy of the site and the surrounding area.” Antony O’Toole, SHACK Architecture 15 16 Assistive Technology One of the main problems facing those working within the care industry is the excessive amount of time required to complete paperwork to report activity at all levels within the care home. While this regulation is imperative to successfully operating a care facility, the nurses and caring staff are often overloaded with an abundance of paperwork following each simple task. As a result of this, they are finding it increasingly difficult to balance this with their main role of providing high-quality care for all residents. To combat this, Clifton Moor will utilise cutting-edge technology as a valuable tool in assisting those responsible for care. This assistive technology will never replace handson care but will increase the amount of time available for actual hands-on care work by the staff in each home. By combining these technologies, every home is able to keep a comprehensive record of each resident’s activity and the member of staff involved. The following equipment has been suggested for installation in Clifton Moor Care Home: • Interactive points around the facility for staff reporting. • Pressure pads around key areas of the facility to register each resident’s activity. • Central database recording all activity around the facility in real time. 17 Working in partnership with Dementia UK Having established a great working relationship with Dementia UK, one of the UK’s leading dementia charities, MBi Social Care is committed to helping the charity in reaching its goal to have 200 Admiral Nurse posts by 2016. Currently celebrating its 20th year, Dementia UK supports Admiral Nurses, specialist dementia nurses who give practical and emotional support to families affected by dementia. 18 As the freehold owner, MBi charge an annual ground rent of £99 to the owner of each bedroom’s leasehold title. MBi Social Care donate 100% of the total raised from these charges to support Dementia UK’s ongoing efforts in running this incredible charity and making more Admiral Nurses available to families who need them. In return, Dementia UK is committed to assisting MBi Social Care with staff training and specialist care consultancy for all care facilities by experienced Admiral Nurses. “ We’re thrilled that MBi have decided to generously donate their charges to Dementia UK, and are very grateful to staff at the organisation who are taking part in a number of exciting fundraising challenges. The funds raised will go towards developing Admiral Nursing, a vital source of support to thousands of people affected by dementia in the UK. We’re also glad to be able to offer Admiral Nurse expertise so that staff at MBi can continue to deliver such high-quality care.” Hilda Hayo, Dementia UK & MBi Social Care Dementia Ambassador 19 20 Experienced & Professional Operation overseen by MBi Social Care Clifton Moor’s operation is to be overseen entirely by MBi Social Care, a specialist team of highly trained and experienced individuals with the single unified goal of creating the very best nursing and dementia care homes with secured funding from local authorities. This ensures consistency in the highest quality of care throughout all of our care facilities and removes the risk undertaken with a completely external outfit. By overseeing the operation under the same umbrella of companies, MBi Social Care provide the developer and leaseholders with full financial control, which allows for the opportunity for future sale without the complication of long leases with external operators. This model also allows for both the holding company and leaseholders to maintain control, enabling the opportunity for a future sale. v 21 22 Feasibility study and Valuation by Savills With over 500 offices worldwide, Savills is one of the largest global real estate services providers offering a broad range of specialist advisory, management and transactional services to clients all over the world. Savills have conducted a thorough valuation of the Clifton Moor Care Home project explaining, in detail, the anticipated value of the care home and expected value at each stage of the build process. They have also included an in-depth feasibility report for Clifton Moor Care Home which outlines the benefits of the area and type of home as well as detailing the rising demand for such a facility. Savills Key Facts • Founded in 1855 • The Times’ number one property industry employer for the last 6 years • Major presence in Americas, Europe, Asia Pacific and Africa • The UK’s leading agency group by turnover • Broad range of specialist advisory services 23 Reviewed by KPMG Officially formed in 1987, KPMG is one of the largest professional services companies in the world and one of the big four auditors. They provide audit, tax and advisory services to some of the biggest companies across the globe. 24 KPMG have been engaged by MBi to assist in the structuring of the transaction and to review the whole project. 25 26 Specialist Care Consultancy by UKCASS UKCASS provide support and guidance to providers of health & social care in England and Wales and have been appointed as Specialist Care Consultants on the Clifton Moor project. As specialist care consultants, UKCASS have provided a detailed insight into all aspects of creating the care home including: • • • • In-depth advice on fit-out specifications Ensure full CQC compliance Competition analysis Local area analysis • Levels of care required • Procurement of equipment • Local authority requirements and liaison • Correct fees 27 Purchase Process 1. 2. 3. 28 Purchaser selects their desired unit, completes reservation form and pays £500 reservation fee. Memo of sale issued to all parties. Contracts prepared, issued and returned with required ID. Remaining deposit funds paid into seller’s designated account to complete exchange process. 4. 5. Unit title exchanged within 72 hours of receipt of completed contract and cleared funds. Returns paid out yearly in arrears less any developer-deferred payments. 29 Clifton Moor Care Home All information within this presentation is deemed to be correct at the time of going to inclusion, but Grosvenor Property Marketing Ltd their subsidiaries and partners, are not be held responsible for errors, omissions or incorrect information due to information from 3rd party sources that are out of our control. Images used in this presentation are for marketing purposes only. This presentation is intended as general information only and must not be relied upon for any particular purpose. The information contained in this presentation is not comprehensive. Grosvenor Property Marketing Ltd have made all reasonable eports to ensure that all information provided is accurate at the time of inclusion; however, there may be inadvertent and / or occasional errors. Grosvenor Property Marketing Ltd make no representations or warranties about the information, including any hypertext links or any other items used either directly or indirectly and reserves the right to make changes and corrections at any time, without notice. Grosvenor Property Marketing Ltd their subsidiaries and partners, accepts no liability for any inaccuracies or omissions in this presentation and any decisions based on information contained are the sole responsibility of the individual. Grosvenor Property Marketing Ltd accept no liability for any direct, special, indirect, or consequential damages, or any other damages of whatsoever kind resulting from whatever cause through the use of any information obtained either directly or indirectly from this presentation or any of our company websites. Information correct at time of publication, E&EO. We reserve the right to change information without notice. ©Copyright 2015. All rights reserved. CMBRO01-WL
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