"The UK has an ageing population and requires care facilities that are fit for purpose, and which align with the long-term fundamentals of not growing obsolete from an investor perspective."
- Cameron Hayes, director at Arc & Co.
Arc & Co. has secured a £16.4m development loan for a 70-bed care home in Fareham, Hampshire.
“This transaction highlights the increasing institutional interest in the UK care sector, which has lagged behind other markets like Canada, New Zealand, and Australia in terms of investment appetite and the overall quality of care,” said Cameron Hayes, director at Arc & Co.
The deal was structured on a three-year facility to support the full development cycle, with flexibility to extend the term subject to performance once the site becomes operational. It also benefits from a pre-let to an established operator.
It was delivered at an LTV of 85% on a turn-key basis, rising to 65% NIV. This reflects the lender’s confidence in the project’s viability and the sponsor’s execution capabilities.
“The UK has an ageing population and requires care facilities that are fit for purpose, and which align with the long-term fundamentals of not growing obsolete from an investor perspective. It’s great to be part of this process in a growing area of the market,” he added.
