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At one point dozens of smaller Irish investors, many with links to the bloodstock world, also shared a stake in the business but are understood to have been bought out over the years. British investor Derrick Smith, another member of the so called ‘Sandy Lane set’ of super rich owners of the eponymous Barbados resort, which also includes McManus, Desmond and Magnier, is understood to be a shareholder in Barchester. On Monday, New York stock exchange listed Welltower confirmed the deal which includes the acquisition of a real estate portfolio of Barchester-operated communities in the UK for £5.2bn (€5.94bn), plus an exclusive long-term partnership with Barchester to operate the sites. The price is more than double a valuation touted when Barchester was last close to a sale in 2018. The portfolio is comprised of 262 homes owned or managed by Barchester under a variety of leasing structures plus 21 ongoing developments. Barchester’s existing management will remain in place but it is understood to mark a full exit for shareholders. The deal was announced by Welltower as part of a massive series of transactions totalling $23bn (€19.7bn), in both the US and Britain. It is also buying Barchester’s rival HC-One. Welltower’s tally of deal includes $14bn of acquisitions, including in the UK, and $9bn of asset sales and loan repayments. The US group said its substantial UK investments were aided by working closely with the Office for Investment, a big initiative of the Starmer Government to bring inward investment into the UK, which has suffered anaemic growth since Brexit. Barchester Healthcare is the UK’s second biggest nursing homes business and the biggest in London and the south east of the country. It has been majority owned by Irish investors since 1994. The Irish Independent previously reported that corporate filings for Barchester's Jersey-based parent company, Grove Investments, showed its shareholder register includes the three main shareholders – Mr McManus, Mr Magnier and Mr Desmond – plus a string of other Irish investors including the family behind Brennan's Bread, meat mogul Paschal Phelan, and nominee companies for Davy and Goodbody stockbrokers. That list – as of December 31, 2017 – included former Ceann Comhairle and Fine Gael TD Sean Barrett, Chris McHugh, a former finance director at NCB Stockbrokers, John Nagle of Barronstown Stud and Eddie Irwin, the finance director of Coolmore Stud. The share register also included Barchester founder and former CEO Mike Parsons and other senior executives. At the time the business was being lined up for sale with Australian financial giant Macquarie tipped potential buyer in 2018. That didn’t happen but its understood smaller shareholders were bought out in the interim, with the main shareholders including the three Irish billionaires consolidating their stakes ahead of this week’s deal. The accounts for last year show staff costs increased by £57m to £519.3m that included share-based payments of £5.65m – which would have gone to senior managers within the business. Directors’ pay fell from £4.12m to £2.62m, last year’s accounts show.
