Funding for care homes
First BGF foray into Highlands with £5m Parklands deal
New plans: Ron Taylor and Keith Barclay
Parklands Group, one of the largest independent care home providers in the north of Scotland, has received a £5m investment from BGF.
Set up in 1993 in Buckie, Parklands provides residential care for older people at eight care homes across Moray and the Highlands, the most recent being Lynemore home in Grantown on Spey.
The investment marks BGF’s first in the Highlands and Moray, having invested more than £200m across 27 businesses in Scotland since 2011.
The growth capital from BGF will be used to support the building of a £4m 40-bed care home in Fortrose and a £6.5m care hub in Inverness, comprising a 48-bed care home and 16 assisted living suites.
Through its Talent Network, BGF introduced Maurice McBride who will join the board as non-executive chairman. Mr McBride is an experienced non-executive director.
Ron Taylor, founder and managing director of Parklands, said: “This investment by BGF is a major vote of confidence in Parklands. It will help fund our next stage of expansion and enhance the quality of care provision in the Highlands.
“By 2020, we will have invested around £16 million on new and expanded care homes, facilities that are much needed in the Highlands. Our investment will create hundreds of jobs in the region and deliver a significant boost to the wider economy. It will also ensure that older people can continue to live in their local community, keeping families closer together.”
The Parklands management will continue to lead the company with the BGF team.
Keith Barclay, an investor at BGF covering the Highlands and Islands, said: “We’re really pleased to have made our first investment in a business based in the Highlands and Moray.
“It is a really important part of the country for BGF as there are some great businesses here and we hope it will be the first of many.
“We are backing a well-established and successful business which has developed a leading position in the market.
“Parklands has a strong management team, a great culture and impressive growth plans. We look forward to helping them take advantage of opportunities in the region, whilst remaining focused on providing the highest standards of care for their residents.”
The investment in Parklands was led by Keith Barclay, David Fraser and Mike Sibson who are based in BGF’s Aberdeen office.
The advisors to the transaction were Burness Paull and Hall Morrice Corporate Finance for BGF, and Brodies for Parklands Group.