20/12/2023
Elevation Advisors LLP (“Elevation”) is pleased to announce that it has completed on a £53 million development facility with prime elderly care operator MACC Care Group (“MACC”), growing Elevation’s real estate credit joint venture (“Credit Fund”) in partnership with a leading institutional real estate investor. The Credit Fund has a mandate to extend development financing for the construction of senior living assets and junior capital to senior housing property and operating companies.
The £53 million development facility will facilitate construction of three new sites, starting with a modern, best-in-class care home in Great Wyrley (South Staffordshire) and 32 co-located retirement living apartments with high-quality shared amenities. The development is targeting both an EPC rating of A and a ‘Very Good’ BREEAM Construction rating. The completed project will benefit from a number of sustainability features including air source heat pumps and solar panels to help deliver an efficient, future-proofed asset.
The MACC portfolio comprises over 900 predominantly en-suite wetroom beds in 13 operating homes across the Midlands, with high-specification builds situated in prominent locations. MACC has undergone a period of very strong growth, opening 8 homes in the last 5 years with 2 more now in construction. This development financing builds on the £124.7 million of senior and junior loans provided by the Credit Fund in Q2 2023, continuing Elevation’s strong partnership with MACC and commitment to continue supporting the sustainable growth of the business.
The additional financing will allow MACC to continue its trajectory in developing next generation, future-proofed real estate while maintaining its excellent standards in 24-hour comprehensive care. All of the homes in MACC’s portfolio hold an EPC rating of A or B, which aligns with Elevation’s strategy of transitioning all homes to perform at the highest standards which the new developments will also meet or exceed. The first new development of a market-leading care home with integrated retirement living units, will also deliver a positive societal impact by reducing the level of undersupply of quality care beds and purpose-built accommodation in its community.
Andrea Auteri, Managing Partner at Elevation said: “We are excited to continue our partnership with MACC by providing funding to grow the portfolio with three additional high-quality care schemes, as we continue the deployment of our Credit Fund with a leading institutional real estate investor. The senior housing sector is severely underserved; its granularity, fragmentation and high barriers to entry mean that it is hard to access the sector in scale. Elevation is pleased to accelerate the provision of fit-for-purpose accommodations by offering innovative financing to enable high quality operators to ramp up their business plans and giving large investors access in scale to the sector. Fulfilling the market need for future proof assets squarely aligns with Elevation’s ambitious ESG strategy.”
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