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PILinvests and Quantum LifeCare to launch care home sector fund

Alternative investment fund specialist PILinvests is teaming up with Quantum LifeCare to launch The Park Gate Care Home fund.

The fund will initially acquire land with detailed planning consent, then design, construct, operate and ultimately sell a purpose-built care home in Southampton offering specialist dementia care. 

The number of over 65s is set to increase by 60 per cent over the next 25 years and it is expected there will be an under-supply of local care homes.

The fund has a tax transparent structure offering 100 per cent inheritance tax sheltering benefits, income distributions payable from year two and will have a maximum life of five years.

James Sullivan, managing director of PILinvests, says: “We are delighted to be able to work alongside Quantum LifeCare to bring this exciting opportunity to market. This team brings together specialists in their respective fields of fund management, land, planning, architecture, construction and care operations backed by sound fundamentals. The fund is targeting in excess of a 15 per cent IRR with scope to exceed 20 per cent. Our aim is to raise GBP3m equity with minimum investments of GBP50,000 and, due to the opportunity’s particularly attractive and unique characteristics we are confident we will be able to do this quickly.”

Julian Shaffer, managing director of Quantum LifeCare, says: “Statistics show that the population of over 85 years of age is set to double over the next 25 years and treble over the next 35 years. With this in mind we have brought together a first-class team to deliver an exceptional care experience for the elderly. We understand that a fully integrated approach to a sector with such un-met needs will deliver not only an outstanding customer experience but also extremely exciting returns. Our aim is 100 per cent vertical integration of the disciplines and skills required in a sector driven by need and which happens to be so undersupplied and, we are thrilled to have PILinvests on board to assist us in achieving that aim.”

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