Why we are engaging with Abbeyfield Scotland Ltd (Abbeyfield Scotland)
We are engaging with Abbeyfield Scotland about its financial health and its planned transfer of engagements.
We have been engaging with Abbeyfield Scotland for some time about its medium term financial health. In late 2019 Abbeyfield Scotland decided to seek a partner following an assessment of its future strategic options. In early 2021 Abbeyfield Scotland began discussions with Blackwood Homes and Care (Blackwood) and in October 2021 Abbeyfield Scotland’s governing body agreed to work towards a transfer of engagements to Blackwood.
Abbeyfield Scotland and Blackwood have been progressing transfer proposals in discussion with Abbeyfield Scotland’s tenants. In June 2022, in an independent ballot 79.2% of Abbeyfield Scotland’s tenants voted on the proposals, with 98.8% voting in favour of a transfer of engagements to Blackwood. Abbeyfield Scotland will continue to work with Blackwood as it prepares for a transfer of engagements in summer 2022.
What Abbeyfield Scotland must do
Abbeyfield Scotland must:
- keep us informed as it works through its proposals for a transfer of engagements to Blackwood including the outcome of the Special General Meeting; and
- send us the quarterly management accounts for Abbeyfield Scotland and its subsidiary Crandeen with associated commentary.
What we will do
- engage with Abbeyfield Scotland as required as it progresses the transfer of engagement to Blackwood;
- review the quarterly management accounts and liaise as necessary; and
- update our published engagement plan in light of any material change to our planned engagement with Abbeyfield Scotland.
Abbeyfield Scotland must provide us with the following annual regulatory returns and alert us to notifiable events as appropriate:
- Annual Assurance Statement;
- audited financial statements and external auditor’s management letter;
- loan portfolio return;
- five year financial projections; and
- Annual Return on the Charter.
It should also notify us of any material changes to its Annual Assurance Statement, and any tenant and resident safety matter which has been reported to or is being investigated by the Health and Safety Executive or reports from regulatory or statutory authorities or insurance providers, relating to safety concerns.