Leading social impact investor, Civitas Investment Management Limited, has announced its £200 million acquisition of a portfolio of special schools, children’s homes and adult specialist care homes from CareTech.

The sale and leaseback deal follows the £1.1 billion acquisition of CareTech by the co-founders of the business in September 2022.

CIM group director, Tom Pridmore said “We are very impressed by the quality of the CareTech portfolio, and we’re pleased to partner with one of the leading care providers in the UK in this landmark transaction. Despite the difficult economic backdrop this year, CIM has continued to invest across specialist care sector, based on the strong fundamentals and long-term demand for high quality specialist care properties in the UK and Europe.”

Farouq Sheikh, co-founder and executive chairman of CareTech, added: “We are delighted to partner with CIM, whom we recognise as being one of the leading responsible investors in the specialist social care sector. This transaction comprises a small proportion of our £1 billion freehold asset portfolio and forms part of our overall strategy which will enable us to continue our growth trajectory in the UK, in digital technologies and international markets.” 

CIM is the largest investor into specialist care in the UK, with over £3.5 billion under management dedicated to investing exclusively into specialist community healthcare and social infrastructure in the UK and Europe.

CareTech is a leading provider of specialist social care services supporting around 5,000 adults and children with a wide range of complex needs in more than 550 schools, residential services, hospitals and day centres.

Knight Frank acted as sole selling agents for CareTech.