McGoff secures £15m to grow care home pipeline
The investment from AJ Bell founder Andy Bell and Fergus Lyons will go towards the Altrincham developer’s burgeoning senior living business, Dunham Care.
Dunham Care is the new senior living venture from McGoff Group Projects and builds upon the success of its predecessor – New Care, whose estate was sold to HCP, Octopus Health Fund, and Lovett Care for a gross disposal sum of £275m.
The first Dunham Care property opened in Kent this year and another two – a 51-bed care home at the former Bowdon Mercure Hotel site in Trafford and a 70-bed complex off Morley Drive in Congleton – are under construction.
The businesses’ pipeline contains a further eight projects at different stages of the planning process. The £15m from Bell and Lyons will help turn these schemes into reality.
“This is a fantastic vote of confidence in what we do by Andy and Fergus and comes at an exciting time for the markets we are exposed to,” said Chris McGoff, director at McGoff Group.
“The demand for new generation, state of the art care homes is in our view stronger than ever as demographic pressure drives demand, and older, inefficient settings become obsolete and close due to ever tightening regulatory compliance, plus higher energy and employment costs.”
He added: “This coupled with recent large scale investment activity in the sector, including Welltower’s acquisition of Barchester, in what was believed to be the world’s biggest care home transaction, highlights continued confidence in the UK care market and its long-term growth potential.”
Bell expanded on why he chose to work with McGoff Group.
“We have spent considerable time assessing the operational real estate market and believe there is a compelling opportunity to back experienced developers who can consistently deliver high-quality, income generating assets,” he said.
“The McGoff Group has a strong track record in originating, developing and operating care- led platforms, demonstrated by the success of New Care. Dunham Care provides a clear opportunity to build on that experience at scale.”
Bell also said that he was intrigued by McGoff Group Projects work beyond just care homes – including its build-to-rent and childcare pipeline and portfolios.
Bell said: “The underlying demand drivers in later living, rental housing and childcare are structural and long-term in nature.
“Our investment reflects confidence in both the management team and the group’s ability to execute a disciplined, repeatable growth strategy over the coming years.”
Jonnie Whittle, founder of Major Oak, introduced Lyons and Bell to McGoff Group, leading to the investment.
