Nine Care Home Assets Sold Following High Court Ruling on Fractional Ownership Structure
Commercial real estate advisor Colliers has completed the sale of a portfolio of nine care homes. The sale follows a landmark High Court ruling relating to a fraudulent fractional ownership structure implemented across the assets, formerly operated under the Qualia Group.
The transaction marks a significant milestone in one of the UK healthcare sector’s most complex restructuring and real estate disposals. Working alongside senior restructuring specialists at Griffins Insolvency Practitioners, Gateley Legal, and Peter Fenwick & Co, Colliers advised on the value and sale of the portfolio, comprising nine care homes and approximately 550 beds.
The sale follows the successful disposal of the first asset in the Qualia portfolio, St Mary’s in Manchester, in 2024.
Between 2016 and 2020, the Qualia Group raised approximately £57 million from private investors who purchased long leasehold interests in individual care home rooms, which were then leased back into the operating group. Following the collapse of the structure and the insolvency of various group entities, a complex legal and restructuring process was required to establish a route to value realisation across the portfolio.
The assets were sold free of approximately 600 fractional leases. Funds realised through the sale process have been used to generate recoveries for investors and creditors affected by the collapse of the scheme.
Alison Willoughby, Associate Director, Healthcare at Colliers, said: “Healthcare transactions are ultimately about people as much as property. Behind every asset are residents, families, carers, employees, investors and operators whose interests must all be considered.
“The successful transfer of these homes to a specialist healthcare operator provides a platform for future investment, operational improvement and long-term sustainability, while also helping to generate returns for those affected by the insolvency process.
“This transaction demonstrates the importance of specialist healthcare and restructuring expertise when dealing with operational real estate assets, where commercial outcomes and human considerations are intrinsically linked.”
Nick Hammond, Head of Restructuring at Colliers, added: “The challenge was not only how to sell the assets, but how to create a structure capable of delivering value for creditors and investors while protecting ongoing care provision and preserving operational stability across the portfolio.
“This restructuring process presented various commercial, legal, and operational considerations. The outcome reflects the art of balancing competing stakeholder interests, managing a highly intricate execution process, and securing a solution to maximise value, while providing certainty for the future operation of the homes.
“The result demonstrates the value of combining restructuring expertise with deep sector knowledge and transaction advisory capability to solve complex real estate challenges.”
There are several assets remaining in the Administration, which Colliers is continuing to advise on and are expected to be sold in due course.
