Hampshire Trust Bank has completed a £16.9m development finance facility for a 105-bed care scheme in Stone, Staffordshire, after taking the deal from initial engagement to completion in six weeks.
The 26-month facility, arranged with Aquilae Capital for New St Mary’s Care Home Ltd, will support the acquisition and development of two units at the St Dominic’s Convent site.
The scheme will comprise a 70-bed elderly care home alongside a 35-bed high-dependency unit.
Aquilae Capital director Jeremy Robinson introduced the transaction to HTB, with the lender working to a fixed completion deadline while also addressing issues connected with the acquisition of the convent site.
Several boundary matters involving the church and surrounding land had to be resolved during the process. HTB said its experience of financing care-sector developments helped the parties progress the transaction without delaying completion.
The deal was led at HTB by lending director Mike Tierney, supported by relationship manager David Hawker and business development manager Scott Apps.
Glovers solicitor Stephanie Cullen acted on the transaction, while Kasia Glaz of Cushman & Wakefield was the valuer and Ben Murphy of Dalbergia acted as project monitoring surveyor.
Tierney (pictured) says: “This was a transaction where certainty and pace really mattered. The client came to us with a fixed deadline, so we needed to understand quickly what had to happen and be clear from the outset about what we could realistically deliver.
“Speed only matters if you understand the sector, make decisions quickly and are clear about what can actually be delivered.
“Our knowledge of the care market was important because there were a number of issues around the site and wider transaction that needed to be worked through.
“We kept everyone close throughout, with regular calls across the borrower, broker and professional team, so issues could be dealt with as they arose.
“That focus meant we were able to get from first engagement to completion in six weeks.”
Robinson says: “Clearly, we are operating in a difficult market, with challenging conditions across both construction and funding.
“We were able to use our experience to work through the issues as they arose, while HTB took the time to fully understand the development and worked closely with us and the client to ensure the transaction was delivered on a timely basis.
“We look forward to continuing to work with this client, both on this site and on further transactions already in the pipeline, having demonstrated the value that experienced advice and the right lending partnership can bring.”
New St Mary’s Care Home director Mariano Cavaleri says: “We are most grateful to HTB, Aquilae Capital, Ramsdens, Glovers, Cushman & Wakefield and Dalbergia, and each individual involved, for their in-depth knowledge of the care market and understanding of multifaceted transactions.
“We greatly value how everybody worked collaboratively in record time to achieve this extraordinary result.”
