CliftonMoorBrochure-V2 - Grosvenor Property Marketing

Care Home, Greater Manchester
10% Assured Returns for 10 Years
Purchase from £51,000 cash input
Clifton
Moor
Care Home
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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
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£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
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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)
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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.
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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.
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Greater Manchester
Spanning almost 500 sq miles in the
North of England, Greater Manchester
includes such vibrant boroughs as
Manchester, Salford, Bolton & Wigan.
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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
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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.
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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.
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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
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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.
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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.
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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
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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
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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
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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.
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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.
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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.
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Clifton
Moor
Care Home
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