Developer lands £7.3m funds for retirement home development
A development firm has landed a £7.3m loan to fund a retirement scheme in Somerset.
Broadwood Capital has completed a £7.3m loan arranged and structured by specialist capital advisor Arc & Co.
The three-year funding package to The Stepping Stone Group was split into two loans and secured by an existing operating care home and adjoining site with consent to deliver retirement living units in Nynehead.
Nynehead Court is a one of the longest standing care homes in the UK and provides 42 beds in a magnificent Grade II listed building set in 13 acres of tended parkland and gardens.
The adjoining Nynehead Court Farm site has full planning consent to initially deliver six retirement living units and potential to extend this to further units at a later date.
An initial loan was used to repay three existing lenders, with a second facility available to fund the construction of the retirement living units when development commences at the end of the summer.
Andrew Robinson, Arc & Co. chief executive and lead advisor on the case, said: “This was a complex transaction, involving three outgoing lenders and an asset class which is widely accepted as difficult to secure funding for at present.
“We worked closely with the client and Dan at Broadwood to find a solution which maximised the strong cashflows from Nynehead Cout Care Home to provide the required leverage to develop out the Court Farm site, all whilst managing the outgoing lenders’ position and expectations.
“Broadwood are specialists in the care sector, and that understanding of the asset class meant that we could come together to find a solution that resulted in best outcomes for all parties.”
Dan Smith, chief executive of Broadwood Capital commented: “The Later Living sector remains a key focus for Broadwood Capital. The aging demographic in the UK continues to create huge pressures on a sector which is undersupplied. Broadwood is seeking to support developers, investors and operators through our depth of understanding, experience and a creative, solutions oriented approach to loan structuring.”
Dan continued, “We are looking forward to working with John Bailey and his team at The Stepping Stone Group through supporting their plans to improve and expand Nynehead Court Care Home and develop out later living units on the Court Farm site, delivering essential care beds and retirement living units.”
John Bailey, founder and owner of The Stepping Stone Group added: “We were delighted with the advice and solution provided by Arc. & Co and the funding package delivered by Broadwood Capital.
“This was a long and complex process given the nature of the underlying property and the parties involved. Dan’s creativity, understanding of the care sector and experience in development, along with his patience, was key to unlocking the financing required for us to take Nynehead Court Care Home and Court Farm to the next stage of their development.
