Voyage Care sells portfolio of Supported Living properties for up to £27.4m
Voyage Care has agreed to sell a portfolio of 40 Supported Living properties to Triple Point Social Housing REIT for an initial consideration of £24.5m plus variable deferred consideration of up to £2.9m.
The sale will reduce EBITDA by a forecast £1.7m on an annualised basis, as Voyage Care will no longer receive rent on these properties.
Following the sale, taking into account the EBITDA reduction and the receipt of proceeds from the disposal, leverage would have been 5.8x as of 30 June compared with the 6.2x reported. Including IFRS 16, leverage would have been 6.3x compared with the 6.7x reported.
The sale of 36 of the properties has been completed, with the final four expected to complete within the next two months following a consultation process with current tenants.
The group said the disposal was in line with its strategy of encouraging and supporting third-party ownership of Supported Living properties, further reinforcing the separation of housing and support arrangements for the people living in these properties.
Before this disposal, Voyage Care had leased these properties to Registered Providers, which sublet housing units within the properties to tenants under individual tenancy agreements. Following the sale, Triple Point will own the freehold interest in the properties but current agreements between Registered Providers and tenants will remain in place. Voyage Care will continue to provide specialist support to tenants.
The group retains ownership of its registered care home freehold properties.
CEO Andrew Cannon noted the sale “frees up our capital resources to develop the business and continue to deliver great care and support” as well as reducing leverage.
As previously reported, the group reported Q1 ending 30 June 2019 turnover up 7.4% to £65.1m and underlying EBITDA up 11.8% to £10.4m. Net debt at 30 June was £262.1m; cash was £12.5m. Voyage Care has a £215m 5.875% 2023 senior secured note and a £35m 10.00% 2023 second-lien note.