Duke Royalty Limited, a leading provider of hybrid capital solutions for SME business owners in Europe and North America, has announced a £14.5 million financing agreement with Integrum Care Group. The financing will be used to acquire Integrum and replace a rent deposit with the owner of Integrum's leasehold properties. Integrum operates six elderly nursing care homes in Kent and East Sussex, with a strong track record in the elderly care sector.
Duke intends to support Integrum's ongoing buy-and-build strategy, recognizing its strength as a platform and its impressive management team. The care homes have strong occupancy levels and good Care Quality Commission ratings, with a diversified funding mix between private healthcare payors, the NHS, and Local Authorities.
Duke will also become a 49% equity shareholder in Integrum, building strong alignment with the new capital partner. The CEO of Duke Capital, Neil Johnson, expressed excitement about the investment, stating that Integrum represents the ideal platform to support within the sub-sector. Adrian Pancott, CEO of Integrum, also expressed enthusiasm about the partnership, highlighting Duke's unique capital offering and expertise in the social care sector.
Integrum Care Group, formed in September 2018, represents a family of six elderly care homes across the South East of England, employing over 475 people and catering for over 300 service users. The group focuses on nursing care within the elderly care industry, providing full residential care typically for residents with higher acuity needs.
Duke has committed an initial £14.5 million of capital, with the potential to increase its investment in Integrum with future tranches of capital. The terms of the financing are in line with Duke's typical investment criteria, provided through a combination of a secured loan and preference shares. The financing is for a period of 30 years, with monthly distributions beginning in April 2024 and adjusted annually based on the percentage change in total combined gross revenues of the Group.
This investment in Integrum Care Group further diversifies Duke Royalty Limited's revenue base and strengthens its position as a leading provider of capital solutions for SME business owners.