Residential care developer receives £26m in loans
Birmingham-based residential care developer and operator MaccGroup has received development and refinancing loans totalling £26m from Fortwell Capital, principal lender to developers and investors within the UK real estate sector.
The deal includes a development facility for Tudor Grange, a new scheme in Solihull that will provide a 64-bed care home and 44 retirement living apartments over the next three years and is Fortwell’s first deal involving retirement living.
Founded in 2004, Macc Group has developed and operates six care homes in the Birmingham area, with two further care homes due to open later this year and the deal also sees the refinancing of Abbey Rose, a newly-built 85-bed care home in Erdington.
A statement from Macc Group said Fortwell’s expertise would contribute greatly to this vital and growing sector: “In Fortwell, we have found a finance partner that not only has the capital available to support our development, but also clearly understands the dynamics of the care home and retirement living sectors, appreciates an entrepreneurial mindset, and has a ‘let’s get it done’ attitude.”
The new loans underline Fortwell’s interest in retirement living and care homes, with a current exposure to the sector of around £100 million. The lender recently increased its debt facility to LNT Care Developments to £70 million.
“We’ve been impressed by both the quality of Macc’s developments and the performance of its operational business, and these new facilities will help support the company’s growth,” said Dan Smith, Chief Executive Officer of Fortwell Capital.
“As demand for retirement living and care homes grows in line with the UK’s aging population, they remain key sectors of focus for us, and it is great to build a new relationship with an established provider such as Macc.”
The loans bring the capital deployed by the lender since February to more than £230m.