OakNorth Bank has completed an £18.5m loan to Care Concern Group to support the development of a new 81-bed care home in Aberdeen.
Care Concern Group will use the structured finance facility from OakNorth Bank to build the care home, which will include hair salons, cinema rooms and a library.
The funding will also be used to facilitate a sale and leaseback agreement with a leading European fund.
Founded in 1991 by Balbir Johal, the Care Concern Group is a family-run business consisting of 78 care homes specialising in general nursing and dementia care across the UK.
“Our new site in Aberdeen will provide residents with the highest quality care from our expertly trained staff, making it another strong addition to our growing portfolio,” said Care Concern Group chief executive Manpreet Johal.
“With the number of people suffering with dementia in Scotland set to increase to over c.164,000 by 2036, the demand for specialised care will continue rising and the need for care homes which can meet these individuals’ needs will become even more important,” he added.
OakNorth Bank senior director of debt finance Deepesh Thakrar said: “With an impressive average occupancy rate of 85 per cent across its entire portfolio, Care Concern Group continues to be one of the most well-regarded and highly-performing care home operators in the UK.
“Under Manpreet’s leadership, the group has won over 100 industry awards for its design and premium approach to care, just as we aim to do with lending. We’re delighted that Manpreet chose us once again as their funding partner and we look forward to working with them on more transactions in the future.”
