With COVID-19 causing significant disruption to many aspects of daily life including business and investment markets, what has been the impact in the care home sector?
These are unsettling times for anyone with an elderly relative who may need care. Care home providers are rightly concerned about ensuring both those with care needs and their staff are adequately protected against the risk of infection, with safety measures being put in place to help prevent and contain cases.
During this challenging time how will care home operators be assisted to ensure continuity of service during the crisis? In response to this question, new guidance has been issued to ensure local authority commissioners support care home operators with a more flexible approach to invoicing and administration, plus prepayment for services.
Collectively, these measures are aimed at reducing financial and bureaucratic pressure on operators, to ensure they can continue effective operation in providing quality care that is so essential for residents.
Whilst the situation is constantly evolving, government guidance will be welcome news for operators. Work is underway on several fronts and over the coming weeks, additional resources and support around testing, PPE and reporting of accurate figures to manage the crisis will likely all be needed.
The renewed sense of appreciation for the value of the health & social care sector is encouraging and news of the measures will also offer some reassurance to those who are invested in care homes or are considering investments in the sector over the long-term.
Whilst the wider economic impact has led to some bruising weeks for global markets, often in turbulent times, more stable yielding assets can provide a sense of long-term certainty. Care home property assets typically provide a fixed income, over a fixed term without the short-term volatility seen in some other asset types.
As with all commercial property investments, purchasers considering care home assets should conduct their due diligence, and seek appropriate advice before making any investment decisions to identify risks and confirm whether an opportunity is right for them.
The Fortem Global team has strong relationships with care home operators and we are proud of our long-standing experience in raising valuable funds for the care home sector, introducing opportunities to our clients from trusted providers.
We would like to take this opportunity to join our clients in wishing all our care home partners every success in overcoming this challenge and applaud the valuable work being done to safeguard staff and residents for the continued successful operation of each care home.
Do you have questions? To find out more about the latest updates on the commercial property sector, contact our team today on +44(0)113 322 2555.