Moray-based independent care home business Parklands Group has received £5 million backing from investment company BGF, which it said will support its £10.5m development plans in the Highlands.
The deal will see Maurice McBride join Parklands as non-executive chairman to help steer its growth.
The company is developing a £6.5m care hub in Inverness, comprising a 48-bed home and 16 assisted living suites and a £4m, 40-bed home in Fortrose, on the Black Isle.
Parklands, set up in Buckie by Ron Taylor 25 years ago, owns eight care homes for the elderly across the Highlands and Moray, including the recently opened Lynemore unit in Grantown.
Mr Taylor, who is the group’s managing director, said: “This investment by BGF, one of the world’s leading growth investors, 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 £16m on new and expanded care homes, facilities that are much-needed in the Highlands. Our investment will create hundreds of new 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.”
He continued: “My team and I will continue to lead the company with the support and financial backing of the BGF team. Their expertise and Maurice’s experience will be invaluable as the company expands in the coming years.
“Fortrose and Inverness are our immediate priorities but this investment unlocks other opportunities to improve residential care in the region.”
It is the first investment for BGF in the Highlands and Moray. The company, formerly know as Business Growth Fund, has invested more than £200m across 27 businesses in Scotland since 2011.
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.”
BGF’s investment in Parklands was lead by Keith Barclay, David Fraser and Mike Sibson, who are based in the company’s Aberdeen office. BGF makes long-term capital investments in return for a minority stake in companies. Initial investments are typically between £1m-£10m, with follow-on funding provided as required.
