Strathmore Lodge Nursing Home is a high-quality and well-established residential nursing home in a Co. Kilkenny location with a wide catchment area.
Strathmore Lodge Nursing Home is a purpose-built, 60 bed facility located in Callan, Co Kilkenny, about 20km from Kilkenny City. This modern two-storey purpose-built nursing home was built in 2005, and comprises 60 bedrooms with a lift providing access between both floors. All bedrooms are single rooms, equipped with a television and en-suite shower room. The facility has two dining rooms serviced by a large modern kitchen.
There are four large lounges and sitting rooms and a separate oratory. Furthermore, two dedicated treatment rooms enable residents to meet visiting health professionals privately. The large enclosed garden, which boasts a wide variety of trees and shrubs, has been designed to be enjoyed safely by the nursing home residents.
Strathmore Lodge Nursing Home is a well-established home operating since 2005. It benefits from a large catchment area from the town of Callan and its surrounds, as well as Kilkenny City, which is circa 20km away.
Ditchley Group has agreed to purchase the asset. The nursing home will be held in a SPV (Special Purpose Vehicle). Ditchley Group (Nursing Homes) Management Limited will be the Asset Manager and equity participant.
Investment Start Date: December 2017
Target Exit Date: December 2022
Bond Notional: €6.1 million
Asset Managers: Ditchley Group (Nursing Homes) Management Limited
Ditchley Nursing Home Group (the operator) is headquartered in Cork and comprises seven nursing homes in regional locations throughout Ireland. The operator has engaged in a consolidation strategy across its homes in order to drive cost efficiencies and revenue enhancements.
Strathmore Lodge Nursing Home is a high-quality asset located in an area of strong demand, which is evidenced high occupancy rates of circa 93% for 2019.
Financial performance for FY19 is behind projections and BlackBee is engaged with the operator to ensure improvement. Current trading is sufficient to meet coupons; however, increase in trading output will ensure that asset value is maximised.
While the source of income into the nursing care sector is primarily government-funded and not considered to be at risk due to Covid-19, the spread of the virus does present a significant operational risk for all nursing home operators.
We are continuously monitoring the situation with the operator to ensure that the increased requirements are met; however, the threat of infection entering the homes is high.