An Irish corporate finance company has linked up with a Danish group as part of a plan to establish 10 nursing homes, costing up to £20 million, in the Republic.
The company, Ailesbury Corporate Finance (ACF), which is controlled by Mr Cormac Crawford, said yesterday that it had signed an agreement with EXSOS, a Danish group specialising in the field of active retirement/nursing homes.
Mr Crawford said the group had done intensive research in Ireland and had concluded there would strong demand for well-run nursing homes now and in the future.
"We have studied the demographics and a serious crisis will be looming by 2005 as the population ages," he said.
Mr Crawford said there is no real Government spending on care for the elderly and it will be up to the private sector to "fill the breech". Changes in the 1998 Finance Act have also helped, as generous tax breaks are now available for investors in such schemes. The changes have sparked interest from investors and finance houses.
Mr Crawford said his company was aiming to raise £20 million through private placings and from a network of brokers around the State to fund the venture. Its partner EXSOS manages active retirement projects throughout Europe, adapting them to local conditions. This includes the supervision of construction, management and staffing. A principal shareholder in EXSOS is the Danish National Association of Care Directors, which has 900 members, providing services to approximately 800 care centres in Denmark, according to Ailesbury.
Ailesbury has identified an number of sites for the first phase of the development. It has equity in place to begin building the homes which will be branded under one name, according to Ailesbury managing director, Mr John Murphy.
He said the majority of the projects would be built outside Dublin. They would be greenfield sites, he added. He envisaged that building on the first project could begin as early as the first quarter of 1999.
Ailesbury Corporate Finance was established by Mr Murphy and Mr Crawford in 1996. Its principal subsidiary is Cormac A Crawford & Associates which has significant-funds under management. It is licensed by the Central Bank. Mr Crawford was formerly founder and executive chairman of the Shannon International Leasing Group.
