£150m finance deal aids expansion of Coventry care home provider
COVENTRY-based ExtraCare Charitable Trust has completed a £150m refinancing deal to support its continued national expansion.
Established in 1988, the charity provides 3,849 homes in 31 retirement villages and other schemes around the country.
The new deal has been arranged by Lloyds Bank, which has supported the charity in previous expansion phases.
ExtraCare currently operates four retirement villages in Birmingham and two in Milton Keynes, all of which were constructed with Lloyds Bank funding support, with a fifth also due to open in Longbridge in 2017.
The latest funding package will support the Trust’s three-year growth plan, which will see the construction of one village in Coventry and another in Solihull. It also plans to extend its geographical footprint across the UK, opening villages in South Gloucestershire, Bedford and High Wycombe as part of its on-going development strategy, meeting the increased demand for retirement facilities in line with the growing ageing population.
The new sites look set to increase the business’ headcount by 200, bringing its total number of employees across all sites to over 1,600.
Mick Laverty, chief executive of The ExtraCare Charitable Trust, said: “Our ethos here at The ExtraCare Charitable Trust is to provide safe, comfortable communities for the older generation to enjoy their retirement. Our long-term plan is to deliver this across the UK, providing an alternative offering to nursing or care homes.
“The on-going funding support provided by Lloyds Bank gives us a vital platform for growth and the capabilities to pursue a pan-regional expansion plan which will see us grow our presence within the Midlands, as well as further south to Buckinghamshire and Gloucestershire.”
David Hykin, relationship director at Lloyds Bank Commercial Banking, said: “The refinance has provided The ExtraCare Charitable Trust with the resource to capitalise on the growing demand for high quality retirement accommodation, and roll out its facilities across wider geographies. In a competitive industry, this will be a valuable catalyst to ensure the business can continue to go from strength-to-strength and consolidate its position as a major player in the sector.”
The ExtraCare Charitable Trust was advised by KPMG throughout the refinancing process. The ExtraCare Charitable Trust received legal advice from Pinsent Masons. Lloyds Bank’s legal advice was provided by DLA Piper.
