“This transaction reflects continued demand for specialist funding solutions supporting the healthcare real estate sector. “
– Martin Cameron – United Trust Bank
United Trust Bank (UTB) Structured Property Finance has provided an £8.5 million commercial sales bridge to support the refinancing and progression of a major care home development opportunity in West London. The onward development has a projected GDV of £65m.
The 12-month facility was structured by Martin Cameron, business development director (structured property finance) at United Trust Bank, who was approached by Neil King of Darkwood Commercial Finance, on behalf of the client Duncan Thomson.
Duncan spearheads the SPV, comprising a consortium of real estate investors, who acquired an ageing commercial property with planning potential.
Planning consent was subsequently obtained for the redevelopment of an 85-bed care home. The funding assisted the SPV in refinancing its existing senior and mezzanine finance, provided capital to facilitate vacant possession via the surrender of the remaining commercial leases, and afforded time to prepare the asset for sale/forward funding.
The project has already attracted interest from an experienced care home operator interested in taking a long lease on the completed development, further strengthening the investment proposition.
Completed redevelopment has an estimated £49.1 million turnkey GDV and potential stabilised value exceeding £65 million.
“This funding provided us with the flexibility and certainty we needed to move the project forward,” Duncan Thomson said.
“UTB understood both the complexity of the transaction and our longer-term objectives, working closely with us to deliver a solution that allowed us to complete the remaining lease surrenders and prepare the site for its next phase.
“Having a lender able to take a pragmatic view of the opportunity and respond quickly was invaluable, and we are now progressing what will become an important addition to local elderly care provision.”
Martin Cameron added: “This transaction reflects continued demand for specialist funding solutions supporting the healthcare real estate sector and demonstrates the value of bespoke specialist finance in helping experienced investors unlock opportunities that conventional funding may struggle to accommodate.
“By understanding both the asset and the borrowers’ exit strategy, we were able to structure a facility that met their needs and provided the flexibility required to maximise the value of the scheme.
“Demand for high-quality elderly care accommodation continues to grow, and developments like this play an important role in increasing the supply of modern care facilities. We’re pleased to have worked with Neil King and supported Duncan and the SPV at an important stage of the project’s evolution and look forward to seeing it progress.”
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