From left - Tony Banks and Steve White

Balhousie Care Group ambition refuelled by £49m refinancing deal

Balhousie Care Group has signed a refinancing deal worth £49m advised by Hampshire based Premier Commercial Finance Ltd, specialists in corporate healthcare sector.

“The last few years have been very challenging for us,” said chairman Tony Banks, who founded Balhousie Care Group 25 years ago. “Like many other organisations in the care sector, we've been under enormous financial pressure. Of course, we wholeheartedly support the improved pay and conditions for our people and the increases in minimum and living wage. As yet, however, there has not been a commensurate increase in public funded support and that has made it tough across the board.”

He added: “But, there must be something in the water in this region that gives us a granite resolution in the face of challenge. The refinance deal provides us with much greater financial stability and gives us the opportunity to really look at our business and invest in key areas of development and improvement including environments and people.

“Our focus is on the care we deliver and our people - those in our care and the staff we employ across our 25 care homes. This was our ethos 25 years ago and it remains the same to this day. Now we are reinvigorated, with expansion plans and renewed ambitions to scale new heights in the care we provide.”

Mike Reid, Balhousie Care Group's finance director, said: “The refinance provides a platform for the Group to buy-back some of our leased homes as well as improve the quality of our existing homes. We are working with new banking partners who have taken time to understand our business, our people and our strategy. Coutts, are lending most of our elderly care portfolio while Triodos, an ethical bank, support our specialist care portfolio. “.

“I am delighted with our new banking partners,” said Tony Banks. “Our aim was to find support for a well planned expansion and Premier Commercial Finance Ltd were able to guide us through what was a complex process. We wanted people with experience in corporate healthcare transactions such as this and that has certainly paid off for us.

“Since we set up our first care home 25 years ago, there has never been a limit to our ambitions for the organisation or the people within it. Now we are in a position to take care to another level; that includes care for our staff, and care for our residents.

“Our belief is that age in later years is an asset because it brings with it priceless lived experience. We want to invest in a culture and environment across all our homes that encourages our residents to build new ambitions and new relationships. We are now better equipped than ever to do that.”