Elevation Completes Financing Exit from Oakland Care Following Five-Year Growth Partnership

The financing represented Elevation’s inaugural investment under its senior housing credit strategy series, launched in August 2021.  ECP I provided development-to-term loans to Oakland over a five-year investment period, supporting the construction and stabilisation of six purpose-built care homes comprising 441 beds.

The partnership between Elevation and Oakland was founded on a shared commitment to deliver positive social outcomes.  Throughout the investment period, Oakland continued to strengthen its position as one of the UK’s leading care home operators, maintaining a focus on high-quality care, a market-leading approach to sustainability and operational excellence.  Oakland has an ambitious ESG strategy, having achieved Greenmark accreditation and becoming the first UK care group to be certified as carbon neutral by the Carbon Neutral Trust across its entire portfolio.

Aligned with this strategy, an emphasis has been placed on the environmental performance of the six new homes.  The designs have focused on the eradication of fossil fuels to deliver carbon reductions with an all-electric power supply, air source heat pumps and photovoltaic solar panels.  The homes have all achieved BREEAM In-Use ratings of ‘Excellent’ and have EPC A-ratings.  Oakland also engaged the local Wildlife Trust to create best-in-class garden environments, designed to maximise biodiversity while ensuring the green space remained functional and accessible for residents.

Each development delivered much-needed new beds to their local markets, helping to address the undersupply of high-quality ensuite wetroom accommodation.  Each of the homes also generated 60-70 new jobs, in addition to supporting local employment during construction.  Oakland placed community engagement at the heart of each development, continuing beyond completion to establish the homes within their local communities.

The investment generated returns ahead of target expectations for Elevation’s investors, validating Elevation’s strategy of providing bespoke capital solutions to high-quality operators in the healthcare and senior housing sectors throughout the UK and Europe.  The partnership successfully navigated a period of significant construction cost inflation during 2022–24, delivering the developments on time and under budget.

Joanne Balmer, Chief Executive Officer of Oakland Care, said: “Elevation has been a valued financing partner during an important period in Oakland Care’s growth.  Their flexible and supportive approach has helped us strengthen our portfolio and continue investing in high-quality care environments for our residents.  We are pleased to have successfully completed this refinancing and would like to thank the Elevation team for their professionalism, collaboration and commitment throughout the partnership.  We wish them every success with the continued growth of their investment platform.”

Eamonn Meadows, Investment Director at Elevation Advisors, said: “We are delighted to have realised this credit investment for our investors.  The refinancing reflects the quality of the underlying assets, the strength of the operational platform created by Oakland, and the attractive long-term fundamentals of the UK care home sector.  The investment performance was ahead of our original underwriting expectations and demonstrates the value of flexible, specialist capital in supporting leading healthcare operators through periods of growth.  We would like to thank Joanne and the Oakland team for a collaborative and successful partnership.”

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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.