Aldermore Bank has provided a £25 million funding package to refinance the existing borrowing of a leading UK care home operator and support the development of a new facility.
The unnamed customer, described as one of the UK’s top 20 care home operators, has worked with Aldermore for more than five years and has expanded its portfolio to more than 1,500 beds.
The latest facility provides additional capital for a new care home as the operator seeks to meet growing demand for care provision.
Aldermore offers funding for owner-occupied investment and development opportunities, acquisitions, refinancing and expansion projects. It also considers international investors seeking to enter the UK healthcare market.
Facilities are available at up to 70% loan-to-value, with interest-only and capital repayment options. The bank said its healthcare proposition was intended for residential and nursing care home operators with experienced management teams, robust performance and strong care standards.
Matthew Cross, relationship director, commercial real estate at Aldermore, says: “Healthcare is a specialist sector, and every transaction needs to be considered in the context of the operator, the quality of the underlying business and its long-term plans.
“Through my experience in healthcare lending, I’ve seen first-hand how operational, regulatory and property-related factors can shape the success of a care home business.
“What stands out about Aldermore is our ability to take a practical, tailored approach, combining sector knowledge, direct access to decision-makers, and the flexibility to support a broad range of funding requirements.
“That includes working with experienced UK operators as well as suitable international investors seeking opportunities in the UK healthcare market.”
Azfar Rizvi (pictured), commercial director, corporate and commercial lending at Aldermore, adds: “This deal demonstrates both the strength of our healthcare proposition and our appetite to support established operators with clear, credible growth ambitions.
“It’s a strong example of how we work with longstanding customers to fund their next stage of growth.
“Demographic change and the need to modernise the UK’s care home estate are creating significant long-term demand for investment.
“We have a strong appetite to support further growth in the sector, working with the right counterparties to fund acquisitions, refinancing, development and expansion.”
