OakNorth has completed £31m of loan-on-loan facilities to Broadwood LLSCF Lending 1 Ltd, a real estate credit fund backed by Broadwood Capital and Aviva Investors.
The funding has allowed the fund to support three new care home developments, delivering 250 care beds in locations with high demand for new build care homes in the UK.
All three care homes are purpose built, have 100% ensuite wet rooms, and meet the sustainability criteria set by the Broadwood LLSCF Fund.
Each of the three customer loans is to a different sponsor, with all being specialist care home developers and operators.
Priya Chauhan (pictured), director of debt finance at OakNorth, said: “We have supported Broadwood since its inception, and have always appreciated the team’s depth of experience in development finance, their institutional approach to credit risk and underwriting, and their strong and efficient governance, which together ensures decisions are reached on a detailed and informed basis.
“Broadwood’s highly experienced principals, led by Dan Smith and James Tarry, have deep knowledge across all aspects of real estate development and investment finance, and just like at OakNorth, there is a focus on optimising customer outcomes.
“We look forward to continuing to support Broadwood on future transactions.”
Dan Smith, CEO at Broadwood Capital, said: “The UK’s rapidly ageing population, structural shortfall in specialised later living housing, and limited availability of construction finance, means there is significant growth potential in the Broadwood LLSCF Fund.
“OakNorth has been a long-term and supportive funding partner of ours and we value its commercial, entrepreneurial, responsive, and collaborative approach.
“OakNorth’s roots as a founder and entrepreneur-led bank align with Broadwood’s culture and approach, making them an ideal partner.”
Smith added: “We see this initial £31m facility as the first step in a larger relationship for Broadwood LLSCF Fund as we secure additional investor commitments for our strategy.”
