Three of Ireland’s best-known businessmen — JP McManus, John Magnier and Dermot Desmond — have sold Barchester Healthcare, the UK’s largest private care home operator, to US real estate giant Welltower in a landmark £5.2 billion deal.
The transaction represents one of the largest healthcare acquisitions in British history and underscores the growing appeal of the UK’s social care market to overseas investors. Welltower, the world’s biggest real estate investment trust (REIT) specialising in healthcare assets, confirmed it will retain Barchester’s existing management team but that the three billionaire shareholders will exit the business entirely.
Barchester operates 223 nursing homes and hospitals across the UK, providing 14,500 beds and employing over 16,000 staff. Founded in 1992 by Mike Parsons, the company has grown into one of Britain’s largest private care operators, with a strong footprint in London and the South East.
McManus, 74, and Magnier, 77 – renowned for their success in global horse racing – along with 75-year-old Celtic FC shareholder Desmond, have held their stake in Barchester for more than two decades through their Jersey-based investment vehicle, Grove Limited.
The trio, who also co-own the Sandy Lane Hotel in Barbados, nearly sold the group in 2019 to Australian infrastructure investor Macquarie for £2.5 billion, but that deal collapsed amid Brexit uncertainty.
Their long-awaited exit now comes at a far higher valuation — more than double the 2019 offer — as rising care fees and growing demand from an ageing population fuel investor appetite for healthcare real estate.
Confirming the deal, Dr Pete Calveley, Barchester’s chief executive, said the sale would strengthen the company’s ability to expand and innovate.
“Through our strategic partnership with Welltower and their significant and ongoing investment into their operating platform, we expect to continue to meaningfully enhance the lives of thousands of older adults by delivering not only exceptional care but also fostering environments rich in social and cognitive engagement,” he said.
Barchester’s most recent results underscore its robust performance. In the year to December 2023, revenues rose 14 per cent to £871 million, while pre-tax profits climbed 23 per cent to £39 million.
Chairman John Coleman, former head of House of Fraser, has overseen the group’s steady expansion and its reputation for operational stability — a key factor in attracting Welltower’s bid.
The acquisition cements Welltower’s status as the largest international investor in Britain’s elderly care sector. Earlier this month, the US firm completed a separate £1.2 billion purchase of care homes from HC-One, bringing its total UK investment to £6.4 billion.
Welltower chief executive Shankh Mitra said the company plans to grow that figure further: “We are excited to expand our presence in the UK and continue to partner with the highest quality operators. Our commitment is long-term — we expect to increase our UK investment to $12 billion over the next five to ten years.”
The deal follows a record £3.1 billion in UK care home transactions last year, driven largely by US institutional investors. Analysts point to the sector’s resilience and strong rental growth, which contrast with weaker demand in office and retail property markets.
According to Cushman & Wakefield, average weekly care home fees rose 8.5 per cent in 2024, providing stable income potential for investors amid broader economic uncertainty.
Lord Stockwood, minister for investment, welcomed the transaction, saying: “High-quality care for our ageing population is one of the most important challenges the government faces. I’m glad to see a long-term and highly respected investor like Welltower continuing to bring their expertise, commitment and technology to the UK.”
Welltower’s expansion marks a pivotal shift in ownership of the UK’s elderly care infrastructure from domestic operators to global capital. For investors, the attraction lies in predictable rental yields, demographic demand and the sector’s essential-service status.
For Barchester, now entering a new chapter under US ownership, the focus will be on scaling its operations and investing in technology-led care models. The deal also signals the accelerating financialisation of Britain’s care industry — where long-term returns, not just compassion, are increasingly shaping who owns the future of care.
Read more:
Irish racing tycoons sell Barchester Healthcare to US giant Welltower for £5.2bn