Investment within an exciting new asset class of care home rooms, with guaranteed returns, defined exit strategy and sold below RICS value

Madison Care Home

Invest in the exciting new asset class of care home room investment, an excellent alternative to the traditional buy-to-let property purchase.

The Madison Care home is a modern purpose built home scheduled for completion in Q1 2013 and is a superb opportunity to invest within this lucrative sector of the UK property market.

Investors can purchase individual rooms and will receive a guaranteed yield of 8% net increasing in-line with the Retail Price Index (RPI) for up to 10 years. The project is sold with a guaranteed and profitable exit strategy between years 3-10 post completion. Investors will also receive interest on their deposit of 15% per annum during construction, providing the investor with an immediate income. Construction is well underway, but whilst the home is being completed investors can have peace of mind that their deposit will be protected by an insurance policy until the build is complete.

The rooms are priced at just £65,000 substantially below the recent RICS valuation carried out in October 2011. The legal fees for the purchase will also be paid for by the developer.

Madison Care Home is a fantastic 66 room residential living facility with every luxury and essential service provided, giving it a competitive edge over other homes in the area. The modern and well appointed en-suite bedrooms will each have a flat-screen TV, telephones, high quality fixtures and furnishings with the majority of the rooms enjoying amazing views across the park. There is also a range of on-site amenities, including cinema room, cafe, conservatory, a lounge on each floor, treatment rooms, consulting rooms, hair-dressing salon, laundry and kitchen facilities.

The care home's senior management team are all healthcare professionals with a wealth of experience from all areas of the UK care industry. The investment will be fully managed, providing investors with an armchair investment.

This growing sector appears to be relatively robust in a tough economic climate and has recently been subject to substantial investment from Private Equity and Pension Funds. Nursing and care homes are recognised as a necessity to cater for the UK's ageing population.

Madison Care Home is ideally positioned to help serve St Helens Social Services requirements for dementia care provision, whose research indicates that nearly 500 individuals will require residential dementia care within the coming financial year, which is more than the current capacity available.

Government reports confirm that the life expectancy of individuals in the UK is increasing, indicating an increase in life expectancy of 4.8 years in the last 20 years and that over the next 20 years it is expected that this will increase by an additional 6 years. The Office of National Statistics report predicts the number of people over the age of 85 years old to triple by 2081 with 1.3 million in 2008 and 7 million in 2081.

Based upon the assumption that 40% of individuals over 85 years old will require a residential nursing or care home, it is estimated that over the next 20 years the additional demand for care and nursing homes will equate to 800,000 rooms. Currently in the UK there are 24,000 care homes and with the projected demand, the number of homes would need to double to meet the number of rooms required.

With just 66 rooms availability is strictly limited and we would advise investors to act promptly to avoid missing out on this superb opportunity.