Care home sold following landmark High Court ruling
A care home in Manchester has been acquired following a landmark High Court ruling.
Manchester-based Agha Group, via its subsidiary Vriddhi Investments, has acquired the 73-bedroom, St Mary’s Nursing Home, in Moston.
Vriddhi Investments was advised by property consultancy Fisher German’s investment team throughout the process, which marks Agha Group’s inaugural investment in the healthcare sector.
The transaction marks the first Qualia Care home to be sold following the collapse of the Birmingham-based company into administration and a landmark High Court ruling to overturn fractional ownership leases sold as part of a ‘Ponzi-like’ scheme.
In August last year the FCA (Financial Conduct Authority) won a High Court case against Robin Forster, the director of Qualia, which took £57m from 380 investors in an illegal care home investment scheme.
Qualia Care Properties and Qualia Care Developments took contributions from individual investors to purchase a long term lease on a care home room to sub-let the room back to the other Qualia companies.
In total, the scheme received £57m from individual investors between February 2016 and September 2020 across 14 homes funded under Qualia Care.
Last month administrator Griffins, through its appointed solicitors, Gateley Legal, secured permission from the High Court to enable the sale of the home with “fractional ownership” leaseholders surrendering their leases.
Commercial real estate firm Colliers’ healthcare team was appointed to sell the home and received more than 50 expressions of interest.
Administrator Stephen Hunt said: “By securing the legal ruling we have been able to unlock the sales process of these assets, which will enable investors and creditors to recover some of their funds.”
Ali Willoughby, from Colliers, said: “There was a real swell of interest in St Mary’s due to the size and quality of the home.
“This has, of course, been a concerning time for residents and staff, who I’m sure are pleased that there will be stability going forward following completion of the sale of the operational asset.”
Vriddhi Investments received legal advice provided by Browne Jacobson’s specialist health care team.
The home will be operated by Serene HC UK, a group of highly experienced healthcare professionals.
Agha Sameer Anwar, CEO of Agha Group, said: “St Mary’s Nursing Home was carefully selected as it is ideally placed to benefit from our operating company, Serene HC’s, particular skill set, working closely with the community to ensure that the most vulnerable are given the dignity and highest level of focused care they deserve.
“Our plans to invest significantly in the fabric of the property will support this commitment to provide leading care for our customers.”
He added: “We’re looking forward to working with the staff and providing reassurance to them and the patients who have been through a significant period of uncertainty.”
Dominic Evans, of Fisher German’s investment team, said: “St Mary’s Nursing Home provides an exceptional existing operational asset of scale, with proven occupational demand and with significant potential for improvement.
“Under the careful stewardship of Vriddhi Investments, working closely with their operating company Serene HC UK Ltd and the existing dedicated staff, the quality care provision will be ensured for the future benefit of all stakeholders.”
