Paragon Development Finance has committed more than £125 million to UK care home schemes since expanding into the sector last year.
The funding has supported developments providing more than 550 beds, with the lender reporting a growing pipeline of further opportunities as it builds its presence in the specialist care market.
Paragon’s care home proposition forms part of a wider diversification strategy that has also taken its development finance business into build-to-rent, later living, purpose-built student accommodation and light industrial property.
The care home offering was established by Adrian Reeves, senior relationship director at Paragon Development Finance, to work with experienced developers and operators delivering new facilities across the UK.
DEDICATED CARE HOME TEAM
Reeves and Lilly Sargeant, senior portfolio manager, are now working exclusively with care home developers as Paragon increases the specialist resource allocated to the sector.
Neal Moy, managing director of development finance at Paragon Bank, says: “This is a significant milestone and demonstrates the confidence developers and operators have in Paragon as a funding partner.
“As the UK’s population ages, the need for high-quality care provision will only increase. Supporting experienced developers and operators to deliver the facilities communities need is a natural extension of our diversification strategy.”
Reeves (pictured) says: “The response to our care home proposition has exceeded expectations. Developers and operators tell us they are looking for funding partners who understand the unique characteristics of the sector, from construction and planning considerations through to operational requirements and long-term value drivers.
“By dedicating specialist resource to the market, we’re able to provide the expertise, responsiveness and certainty that experienced care home developers require.
“We’ve built strong momentum in a relatively short period of time and have a substantial pipeline of opportunities that gives us confidence in the long-term prospects for the sector.”
Current schemes backed by Paragon include a 71-bed care home in Birmingham, a 75-bed residential and nursing facility in Chester and an 84-bed home in Middleton, Greater Manchester.
Paragon Development Finance works with SME developers and operators across England and Wales and has funded the delivery of more than 16,000 homes since 2018.
