01/11/2024
Elevation Advisors LLP (“Elevation”) is pleased to give an update on a £53 million development facility with prime elderly care operator MACC Care Group (“MACC”) advanced by Elevation’s 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 and lease-up of senior living assets, and junior capital to senior housing property and operating companies.
The £53 million development facility provides funding for three new 100% wet-room, high-quality schemes. The first site, referenced in the press release dated 20 December 2023 (here), is a best-in-class care home in Great Wyrley (South Staffordshire) with 90 beds and 32 co-located retirement living apartments. Construction is underway and the home is due to open in early 2025, with the apartments due to complete in 2024.
The Credit Fund has now allocated the balance of the facility for the next two assets in Brownhills and Shirley in the West Midlands, with 90 and 72 ensuite wet-room beds respectively. Construction is due to commence on both sites in November 2024.
MACC is a well-regarded regional operator that has grown rapidly, opening 9 homes in the last 6 years. The MACC portfolio comprises over 980 predominantly ensuite wet-room beds in 14 operating homes across the Midlands, with high-specification builds situated in prominent locations. This development financing builds on the £125 million of senior and junior loans arranged and 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 three developments are targeting both an EPC rating of A and a ‘Very Good’ BREEAM Construction rating. The completed projects will benefit from a number of sustainability features including air source heat pumps and solar panels to help deliver efficient assets built for the future. The assets will encourage sustainable travel options through the inclusion of EV charging points and covered cycle storage, in addition to their proximity to local public transport links. The three developments incorporate increased levels of biodiversity through the provision of ample green space and ecology planning. 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.
Andrea Auteri, Managing Partner at Elevation said: “We are excited to expand our partnership with MACC by providing funding to continue its trajectory in developing next generation real estate, as we continue the deployment of the Credit Fund. The senior housing sector is severely undersupplied; 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 purpose-built accommodation by offering innovative financing that enables high-quality operators to ramp up their business plans and gives large investors access in scale to the sector.”
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Disclaimer
This press release is issued by Elevation Advisors LLP, which is authorised and regulated by the Financial Conduct Authority. The information contained herein is provided for informational purposes only and does not constitute investment advice, an offer to buy or sell any financial instrument, or a solicitation of any kind. Past performance is not a reliable indicator of future results. Any forward-looking statements or projections are based on current assumptions and subject to risks and uncertainties that may cause actual outcomes to differ materially. This communication is intended solely for professional clients and eligible counterparties as defined by the FCA. It is not directed at retail clients and should not be relied upon by any person who does not meet the criteria for professional client classification. Investments may involve significant risk, including the potential loss of capital. Recipients should seek independent financial advice before making any investment decisions. While reasonable care has been taken to ensure the accuracy of the information provided, Elevation Advisors LLP makes no representation or warranty as to its completeness or reliability and accepts no liability for any loss arising from reliance on it.
