ABI Property Investment: Investing in Acquired Brain Injury Care Property

A practical guide for investors, care operators and developers assessing acquired brain injury property opportunities across London and the UK

ABI property investment can provide an opportunity to invest in specialist healthcare real estate designed for people living with acquired brain injuries. Unlike conventional residential property, ABI accommodation can require specific layouts, accessibility features, rehabilitation areas and specialist facilities.

For investors, the property itself is only one part of the investment. The proposed care model, operator, lease structure, refurbishment requirements and regulatory position can all affect the viability of an ABI property investment.

Existing CQC-registered services demonstrate that ABI care properties can range from purpose-built rehabilitation centres to larger care homes and mixed accommodation schemes. For example, Hothfield Manor was registered for accommodation with personal and nursing care for up to 45 adults with acquired brain injury and included a neuro-rehabilitation unit, long-term care accommodation and bungalows.

What is ABI property investment?

ABI property investment involves acquiring, developing, leasing or refurbishing property intended to accommodate services for people with acquired brain injuries.

Potential investment opportunities include:

• Existing ABI care homes

• Neurological rehabilitation centres

• Former care homes suitable for conversion

• Specialist supported living properties

• Accessible residential properties

• Bungalows

• Purpose-built care facilities

• Properties leased to specialist care operators

• Development sites for neurological care accommodation

The investment structure can vary. An investor might own the freehold and lease it to an experienced care operator, purchase an operating care business with its property, or acquire a building and work with a specialist provider to establish a new service.

Why the property specification matters

ABI services can have very different requirements from standard residential accommodation.

A property may need to accommodate residents with mobility limitations, cognitive impairments, communication difficulties or complex care requirements.

Potential property requirements include:

• Accessible entrances

• Wide circulation routes

• Accessible bedrooms

• Wet rooms

• Level-access facilities

• Passenger lifts

• Communal lounges

• Dining areas

• Therapy rooms

• Rehabilitation spaces

• Staff offices

• Medication storage

• Accessible gardens

• Adequate parking

The exact requirements depend on the service being delivered.

For example, CQC records show that Oakwood Acquired Brain Injury Rehabilitation Service was designed around residential care for up to 13 people and promoted independent living skills, including access to cooking and laundry facilities.

This illustrates why an investor should assess the operational requirements of the intended service before deciding whether a property is suitable.

Existing ABI care homes as investments

Buying an existing ABI care home can provide a different investment proposition from acquiring an ordinary residential property.

The building may already have specialist infrastructure, accessible accommodation and established communal areas.

However, investors should investigate the property and operating arrangements separately.

Important due diligence can include:

• Property ownership

• Existing lease arrangements

• Operator financial position

• Occupancy

• Existing registration

• Care service history

• Property condition

• Planned capital expenditure

• Maintenance obligations

• Fire safety

• Accessibility

• Planning history

• Building compliance

An existing specialist facility should not be assumed to remain suitable indefinitely. CQC assessments can identify issues involving the safe management of services, premises or care delivery, making ongoing due diligence important.

Buying property and leasing it to an ABI provider

One possible investment structure is to own the property while a specialist care provider operates the service.

In this arrangement, the investor may focus primarily on the real estate while the operator manages the care business.

The lease needs careful consideration.

Relevant issues can include:

• Lease length

• Rent

• Rent review provisions

• Repair obligations

• Structural maintenance

• Insurance

• Adaptation rights

• Refurbishment responsibilities

• Compliance-related works

• Assignment and subletting

• Reinstatement obligations

A specialist property adviser can help investors understand how the proposed lease structure affects the underlying property investment.

ABI care home investment versus ordinary residential property

ABI property has different characteristics from conventional buy-to-let property.

An ordinary house may be relatively easy to sell or re-let to a broad residential market. A specialist care property can have a narrower range of potential occupiers but may have been specifically adapted for its intended use.

This means investors should consider the property's alternative uses and exit strategy before committing capital.

Questions worth asking include:

• Could the building be used by another care provider?

• Can the property be converted to another specialist use?

• What adaptations are permanent?

• How much would reinstatement cost?

• Is the location suitable for alternative uses?

• What is the underlying residential or commercial value?

• How easily could the property be sold if the current operator leaves?

These questions are particularly important when substantial capital is being spent on specialist adaptations.

Converting a property for ABI care

Another investment route is purchasing a conventional property and converting it into specialist ABI accommodation.

Large houses, former care homes and other suitable buildings may provide opportunities.

Potential works can include:

• Bedroom alterations

• Bathroom conversions

• Wet-room installation

• Door widening

• Ramps

• Lift installation

• Fire safety upgrades

• Electrical works

• Heating improvements

• Kitchen alterations

• Therapy rooms

• Accessible garden works

The feasibility of conversion should be established before acquisition.

Planning, building control, fire safety, accessibility and structural considerations can materially affect the cost of the project.

Purpose-built ABI property

Purpose-built neurological rehabilitation and ABI facilities can provide a different investment opportunity.

CQC records include examples of purpose-built ABI facilities. STEPS Neurological and Trauma Rehabilitation Centre, for example, operated as a residential care home for people with brain injury, with the building specifically designed to support rehabilitation.

Purpose-built accommodation can provide greater control over:

• Bedroom configuration

• Accessibility

• Therapy areas

• Staff facilities

• Circulation

• Communal spaces

• Outdoor areas

• Specialist equipment

The trade-off is generally a greater development requirement and higher upfront capital commitment.

ABI supported living property investment

Not every ABI service operates as a care home.

Supported living can provide a different property model, where residents live in their own homes and receive care or support separately.

For an investor, this can mean considering individual houses, apartments, bungalows or small supported living schemes rather than a traditional care home.

The legal and regulatory structure should be established before purchasing the property because the distinction between supported living accommodation and a care home can affect the way the property is used and managed.

Location for ABI property investment

Location remains important even when the property is highly specialised.

Investors and operators may consider proximity to:

• Hospitals

• Neurological services

• GP practices

• Pharmacies

• Public transport

• Local shops

• Community facilities

• Accessible parks

• Family networks

• Employment and staff catchment areas

For London investments, location can also influence acquisition costs, redevelopment potential and the availability of suitable larger properties.

A specialist property in the wrong location may be difficult to operate efficiently, even if the building itself is well designed.

Assessing the ABI care operator

For an investor leasing a property to a care provider, the operator can be as important as the building.

Due diligence may include reviewing:

• Experience in ABI care

• Existing services

• Financial strength

• Management team

• CQC history

• Occupancy

• Staffing model

• Referral relationships

• Expansion plans

• Lease commitments

• Ability to maintain the property

Headway's Approved Provider scheme also recognises specialist residential settings, neuro-rehabilitation units and nursing homes specialising in acquired brain injury.

Investors should undertake their own professional due diligence rather than relying on an accreditation, rating or marketing claim alone.

Understanding refurbishment costs

A common mistake in specialist property investment is focusing on the purchase price without properly costing the works.

An apparently attractive property may require substantial expenditure on accessibility, fire safety, bathrooms, electrical systems, heating, kitchens or communal areas.

Before completing an acquisition, investors can commission:

• Building surveys

• Accessibility assessments

• Fire safety reviews

• Planning advice

• Building control advice

• Cost plans

• Mechanical and electrical assessments

• Refurbishment feasibility studies

This provides a clearer picture of the total capital requirement.

ABI property development opportunities

Investors and developers may also consider new specialist accommodation where local property conditions support development.

A development project could involve:

• New-build ABI care accommodation

• Conversion of an existing building

• Extension of an existing care home

• Additional specialist apartments

• Rehabilitation facilities

• Mixed independent and supported accommodation

The development strategy should begin with the intended care model rather than simply designing a building and looking for an operator afterwards.

Working with Fraser Bond on ABI property investment

Fraser Bond supports investors, developers, care providers and landlords with specialist property requirements across London and the UK.

Our services can include:

• ABI property sourcing

• Acquisition advice

• Investment consultancy

• Property feasibility assessments

• Development consultancy

• Refurbishment planning

• Construction coordination

• Contractor management

• Property management

• Repairs and maintenance

• Landlord support

• Specialist care property searches

For investors considering ABI property, Fraser Bond can help assess the property requirements alongside the wider acquisition and refurbishment considerations.

Whether the objective is to purchase an existing ABI care home, acquire a building for conversion, develop a specialist facility or secure a long-term operator lease, the property strategy should be established before committing significant capital.

Start your ABI property investment search

ABI property investment requires a careful assessment of the building, operating model and long-term investment strategy.

An investor should understand the property's condition, accessibility, potential use, refurbishment requirements and exit options while also assessing the proposed care operator and lease arrangements.

With specialist property advice, an ABI property investment can be evaluated as more than simply a building with bedrooms. Its suitability for neurological care, rehabilitation, supported living or specialist residential services needs to be considered alongside the underlying property fundamentals.

Fraser Bond can assist investors and care providers looking for ABI property opportunities across London and the wider UK, from property sourcing and acquisition through refurbishment, construction and ongoing management.