A £31m loan facility from digital bank OakNorth will support the development of three new care homes in London, Staffordshire, and Lancashire.
The loan to Broadwood LLSCF Lending 1 Ltd, a real estate credit fund backed by Broadwood Capital and Aviva Investors, will enable the fund to deliver 250 care beds.
The new purpose built homes will provide meet the sustainability criteria required of Broadwood LLSCF Fund and are in locations where there is high demand for new build care homes.
Priya Chauhan, director of debt finance at OakNorth, said: “We have supported Broadwood since its inception, and have always appreciated the team’s depth of experience in development finance, their institutional approach to credit risk and underwriting, and their strong and efficient governance, which together ensures decisions are reached on a detailed and informed basis. Broadwood’s highly experienced principals, led by Dan Smith and James Tarry, have deep knowledge across all aspects of real estate development and investment finance, and just like at OakNorth, there is a focus on optimising customer outcomes. We look forward to continuing to support Broadwood on future transactions.”
Broadwood Capital CEO Dan Smith commented: "The UK's rapidly ageing population, structural shortfall in specialised later living housing, and limited availability of construction finance, means there is significant growth potential in the Broadwood LLSCF Fund. OakNorth has been a long-term and supportive funding partner of ours and we value its commercial, entrepreneurial, responsive, and collaborative approach. OakNorth’s roots as a founder and entrepreneur-led bank align with Broadwood’s culture and approach, making them an ideal partner. We see this initial £31m facility as the first step in a larger relationship for Broadwood LLSCF Fund as we secure additional investor commitments for our strategy.”
