Barwood Capital and Perseus Land & Developments have acquired the Ashley House care home near Guildford in Surrey from private owners for £2.5m.
The property in Shalford is a converted 32-bedroom care home that is due to close this year.
A planning application is being prepared to replace the existing facility with a purpose-built 60-bedroom care home providing residential, dementia, respite and palliative care.
The property was acquired for the Barwood Regional Property Growth Fund IV. The acquisition is the fund’s first care home opportunity to be acquired in partnership with Perseus.
Barwood Capital head of asset management Andrew Barlow said: “We identified the care home and retirement living sector as one where there are opportunities to invest with the social benefits of improving senior living accommodation within local communities.”
He added: “Perseus’ ability to identity such acquisitions through its network is impressive. Despite the challenges being faced with the Covid-19 crisis, we maintain our commitment to play a part in providing investment and regional jobs.”
Perseus Land & Developments managing director Duncan Ford, managing director said: “In the immediate locality of Ashley House, there is currently a shortfall of over 100 bed spaces. Guildford features heavily on the requirement lists of many national care home operators with whom we are in touch.”
Christie & Co and Shoosmiths LLP acted for the purchaser.
