Christie & Co, a specialist business property adviser, has successfully overseen the sale of Cherry Tree Care Home in Caldicot, South Wales, for an undisclosed amount. The care home, which has been under the ownership of Hallmark Luxury Care Homes for 27 years, has been acquired by Basanta Nepal of Dreams Care Homes, marking a significant strategic shift for both parties involved.
Cherry Tree Care Home is a purpose-built facility that accommodates up to 41 residents who require residential and nursing support. The property is well-regarded for its quality of care and has long been an established part of Hallmark's portfolio, serving the local community effectively for nearly three decades.
Aneurin Brown, managing director at Hallmark Luxury Care Homes, highlighted the rationale behind the sale. Despite the home’s positive reputation and historical significance within Hallmark, it did not align with the company’s broader long-term strategic direction. This divergence led to the decision to proceed with the sale, allowing Hallmark to focus on its core portfolio.
The new owner, Basanta Nepal, managing director of Dreams Care Homes, brings considerable experience to Cherry Tree, with two existing care homes in southeast Wales. Nepal expressed excitement about the acquisition and praised the current staffing team, indicating a commitment to maintaining and enhancing the level of care provided.
The transaction was managed by Rob Kinsman, regional director – Care at Christie & Co. The process was conducted with a focus on discretion and efficiency to maintain business continuity. Kinsman expressed satisfaction with the seamless execution and completion of the sale.
Hallmark Luxury Care Homes received legal counsel from Morgan LaRoche, while Dreams Care Homes was represented by Bowcock & Pursaill, ensuring that all legalities were thoroughly addressed to facilitate a smooth transition.
The strategic acquisition by Dreams Care Homes positions Cherry Tree for continued excellence under new leadership, supported by experienced legal advisement from Bowcock & Pursaill.
Q&A with Bowcock & Pursaill
What were the key legal priorities for Dreams Care Homes in acquiring a facility like Cherry Tree Care Home, and how did your team address these?
The property represented a significant proportion of the value in the business and a full due diligence exercise was undertaken in this respect. The staff at home are also a significant resource and all of the employee arrangements were reviewed with this in mind. We aim to understand both our client’s business model and that of the target to focus our due diligence efforts on the areas which are critical to both. We worked closely with our client’s own HR team to ensure their aims were met as regards staff. We also interacted with the accountants appointed to represent Dreams to ensure that the tax and financial aspects of the transaction were understood from their perspective.
Can you share any unique legal challenges or considerations encountered during the transaction process for Cherry Tree Care Home?
The timescales in which the parties wished to conclude this deal were a significant challenge. Bowcock & Pursaill worked closely with all parties to achieve the desired result whilst protecting its client interest in the transaction.
What were the main legal due diligence steps Bowcock & Pursaill took to ensure compliance with regulatory standards for Cherry Tree Care Home?
Bowcock & Pursaill took full and clear instructions from the client to ensure that they were fully briefed on the areas of concern to the client and raised targeted enquiries in this regard. All parties had access to the seller’s data room and were encouraged to fully participate in the review of this information to feed into the warranties and agree the seller’s disclosure.
What role did Bowcock & Pursaill play in facilitating communication between all parties involved in the transaction, and how did this contribute to the overall success of the deal?
Representatives from Bowcock & Pursaill participated in weekly Teams meetings with their client and representatives from Morgan La Roache and the seller. This enabled the transaction to move in a timely fashion to meet the seller’s deadlines.
“We were delighted to be working once again with Basanta Nepal and his team at Dreams Care Home and wish them every success in their new venture.”
