The three new construction projects, forming part of MACC’s development programme over the next 2-3 years, are located in areas with a notable undersupply of wetroom facilities and will collectively add 244 wetroom beds. Each project, meeting MACC’s high standards for comfort and design, aims for an EPC rating of A upon completion and will incorporate renewable and low carbon technologies, including PV solar panels.
MACC is a care home and senior living operator and developer with a portfolio comprising over 1,300 predominantly ensuite wetroom beds in 18 care homes, as well as 4 senior living schemes. This financing builds on Elevation’s strong partnership with MACC, beginning in 2023, and reflects Elevation’s ongoing commitment to supporting the sustainable growth of the business.
ECP III’s strategy is to provide high-quality operators and developers of UK senior housing real estate with a range of customised loan financing options including investment term loans, development loans, mezzanine loans and preferred equity. Loans can be sized between £10m and £100m, with LTV of up to 80% and development LTC of up to 85%, over a term of 2 to 5 years and will be used to support acquisitions, developments, lease-up, refinancing and recapitalisation.
With the continuing urgent need for high-quality care beds designed for the UK’s growing elderly population, we recognise the importance of funding schemes which deliver wetroom provision to local communities with large undersupplies, and so we are delighted to finance these construction projects with high ESG specifications.”
Zach Smith, Investment Director at Elevation
Overview image features Millfield Rose Care Home, financed by ECP II in partnership with MACC Group.
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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.
The senior debt facility provides an investment term loan to finance the acquisition of Lindridge Care Home in Brighton & Hove as well as release equity to the wider group. The senior debt facility also provides a further tranche to finance the development and construction of two new homes by Anavo. The loan is secured on the trading care home with 89 ensuite beds, currently rated EPC B, and providing a quality environment to residents both internally and through the ample outside space. Anavo is committed to integrating the local community into the home, including a comprehensive schedule of activities offered to residents.
ECP III provides high-quality operators and developers of UK senior housing real estate with a range of customised financing options including investment term loans, development loans, mezzanine loans and preferred equity. Anavo is a growing operator with an excellent track record in care quality, and currently operates 15 care homes across the UK, with a further pipeline of homes under development.
Jamie Braganza, Partner at Anavo said: “Completing the purchase of Lindridge Care Home is an important milestone for our business. After taking on the lease in May 2024, we focused on improving both the care operations and the built environment which delivered a successful turnaround of the home. Elevation have understood our aspirations as a business and helped structure a financing package that supports the sustainable growth of Anavo into the future. This transaction creates a platform for us to further invest in our own developments, and we’re excited to deploy this capital across a strong and growing pipeline of opportunities.”
Zach Smith, Investment Director at Elevation said: “We are excited to announce this latest transaction as we continue to deploy ECP III and to grow our partnership with Anavo, expanding into credit alongside the existing strong relationship with our specialist private open-ended healthcare REIT. The goal of ECP III is to provide tailored financing to best-in-class operators and developers, and as such we were delighted to provide a bespoke funding package for Anavo to cover both acquisition and contribution to future group expansion through development. Anavo’s environmental strategy mirrors our own and we are impressed by their leading care quality and community engagement programmes. With funding solutions that help developers and operators rapidly scale their business plans, we continue to support the delivery of vital purpose-built senior housing and high-quality care, while enabling investors to access this attractive sector at scale.”
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.
The senior debt facility provides investment term loans to refinance development lending and provide working capital for three newly constructed care homes in Bexhill, Halling, and Yeovil operated by Oyster Care Homes. The homes, comprising 198 wetroom en-suite beds, are built to the latest environmental standards and have an EPC A-rating and BREEAM In-Use ratings of ‘Excellent’. The specification has an all-electric design with solar PV and ground source heat-pumps providing sustainable heating and cooling to the homes.
Oyster Care Homes are a leading operator with excellent care quality, and currently operate 7 care homes in locations across the south of England, with a further pipeline of homes under development by LNT. LNT is a leading UK care home developer with 30+ years’ experience, over 250 sites developed and has a focus on developing standardised real estate that exceeds the latest environmental standards.
Zach Smith, Investment Director at Elevation said: “We are excited to announce this first transaction for our new credit fund focused on offering flexibility and increased choice to best-in-class borrowers. We are delighted to expand our partnership with LNT by providing funding to support its portfolio of next generation real estate with excellent environmental credentials and to begin a partnership with Oyster Care Homes with their excellent management and home staff teams, leading care quality and community engagement. By offering financing that enables high-quality developers and operators to ramp up their business plans, we can support the essential provision of purpose-built senior accommodation and delivery of high-quality care, while giving investors access in scale to this compelling sector.”
About Oyster Care Homes
Oyster Care Homes is a provider of exceptional care services, dedicated to offering care and support that focuses on resident well-being and quality of life.
About LNT Care Developments
LNT delivers market-leading, standardised design homes across the UK through a vertically integrated business model. LNT homes are precision built, quality engineered facilities designed to enable the best care for the resident.
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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.
ECP III’s strategy is to provide high-quality operators and developers of U.K. senior housing real estate with a range of customised loan financing options including investment term loans, development loans, mezzanine loans and preferred equity. Loans will be sized between £10m and £100m, with LTV of up to 80% and development LTC of up to 85%, over a term of 2 to 5 years and will be used to support acquisitions, developments, lease-up, refinancing and recapitalisation.
The successful capital raise – Elevation’s third private credit vehicle – builds on Elevation’s intimate familiarity with the U.K. senior housing sector, Elevation’s single focus on the healthcare real estate market and Elevation’s proven track record managing private credit.
ECP III will focus on the delivery of positive outcomes in the senior housing market and combine both high-quality sustainability performance with the delivery of positive social outcomes within the sector. Through targeted deployment utilising Elevation’s robust due diligence process and frameworks, ECP III will seek to benefit service users, employees and local communities.
Zach Smith, Investment Director at Elevation said: “Following the successful deployment of two previous senior housing private credit funds, we are delighted to raise capital that will further increase the supply of much-needed senior housing and elderly care beds, and provide sustainable, tailored funding solutions to high-quality operators in the U.K.. We are committed to supporting this critical sector and the increased debt financing capability offered by ECP III will provide top-tier borrowers with greater flexibility and increased choice to accelerate their business growth and support their existing portfolios. With the chronic undersupply of elderly care beds and senior housing in the U.K. and increasing demand from long-term demographic trends, we are delighted to give investors access to this underserved market and provide vital capital to support positive social outcomes across the U.K..”
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.
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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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.
Oakland is a leading care operator in the South East of England with ten operating care homes across London and the South East, comprising 732 beds. Oakland Care is a highly-respected operator with 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 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. It is anticipated that the homes will achieve BREEAM In-Use ratings of ‘Excellent’ on completion. Furthermore, the homes will each create circa 80-100 jobs for their local communities.
Joanne Balmer, Chief Executive Officer at Oakland said: “The acquisition of sites in Harpenden and Bracknell marks a further step forward in achieving our growth ambitions to provide exceptional care to people living in these communities. Through investment in renewable technologies, the impact of these homes to the environment is minmised and they will represent the design of the future for Oakland to achieve net zero. We are delighted to add these homes to our award winning portfolio and are looking forward to their opening in 2026.”
Eamonn Meadows, Investment Director at Elevation said: “We are delighted to continue our partnership with the award-winning Oakland with the development financing of these two homes, following the development of four care homes together since 2021. Oakland’s strategy for progressing ESG and sustainability is strongly aligned with that of Elevation and our aspirations of operationally net zero assets. These two homes in Bracknell and Harpenden will fulfil the market need for care homes which are built for longevity and make a positive contribution to their wider communities.”
Oakland Care has a track record in developing and operating market-leading elderly care homes in London and the South East. Their high-end care homes offer luxurious, comfortable living that promotes individuality. Oakland focusses on delivering the highest standards of care in a five-star environment along with fulfilling activities programmes to offer exceptional resident experiences.
Oakland Care have been recognised as one of the Top 20 Mid-Size Care Home Groups in 2024 by carehome.co.uk and named ‘Residential Care Provider of the Year’ (Small Group) in the Health Investor 2023 Awards and additionally, Investors in People ‘UK Employer of the Year 2023’ for Gold standard companies with more than 250 employees.
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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.
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 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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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.
Simultaneously, the Credit Fund has completed its first transaction, extending senior and junior loans in aggregate amount of £124.7 million to prime elderly care operator MACC Care Group (“MACC”) to help MACC refinance existing indebtedness and accelerate growth of the business.
The MACC portfolio comprises over 900 predominantly en-suite wetroom beds in 13 homes across the Midlands, with high-specification builds situated in prominent locations. MACC has also developed market-leading integrated retirement living units at its latest sites, which have been developed with green travel in mind with options for electric charging points at each apartment. MACC has undergone a period of very strong growth, opening 8 homes in the last 5 years, and this 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 the 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. MACC are committed to working collaboratively to monitor the performance of the homes to drive further change and integrate the latest environmental technologies where appropriate. In addition, the homes have a positive societal impact, delivering a high number of quality care beds reducing the level of undersupply in these areas.
Naz Nathani, CEO of MACC Group said: “It was a real pleasure dealing with very knowledgeable and focused team during the refinance. MACC was well supported and listened to and the final shape of the deal was innovative and bespoke, meeting our immediate needs but with a clear and visible pathway for the planned growth. We are confident of the significant value this will create for MACC and thanks to Elevation in achieving this with us. We are looking forward to the next few years of growth and partnership.”
Andrea Auteri, Managing Partner at Elevation said: “We are excited to begin our partnership with MACC by adding 13 modern, high-quality homes to the portfolio, as we seed and grow our Credit Fund. 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 ESG strategy.”
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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.
Elevation will look to provide whole loans, sized in excess of £20m, to developers and operators with strong track records in the UK senior living space to fund developments and/or acquisitions. The debt financing strategy aims to offer flexibility and increased choice to best-in-class borrowers.
The strategy has been seeded with a loan extended to Oakland Care (“Oakland”), a leading elderly care developer and operator, who is backed by leading private equity growth investor Synova.
Oakland currently operates six luxury care homes with 434 beds across London and the South East, with a further three care homes under construction and more land sites in the pipeline. Oakland has an ambitious ESG strategy for the next five years, having already achieved Greenmark accreditation and more recently announcing it had become the first UK care group to achieve carbon neutral status across its entire portfolio following certification by the Carbon Neutral Trust. The loan commitment offers an integrated financing solution spanning the construction and lease up phase of each development allowing Oakland to significantly increase the number and rate of new elderly care communities it develops and operates in the South East of England.
Elevation continues to pursue further transactions with a growing exclusive pipeline of future potential investments.
Andrea Auteri, Managing Partner at Elevation said: “Elevation is thrilled to be able to bring to the UK senior living market a compelling debt offering. The strategy will be the third pillar of growth for Elevation and work complimentarily alongside our triple net lease and joint venture platforms. We are excited to grow our relationship with SRE. We have been impressed by Oakland’s success story and are delighted to have the opportunity to partner with its experienced management team and shareholders to accelerate the growth of their business.”
Josh Cleveland, partner and head of EMEA for SRE, added: “We are delighted to expand our relationship with Elevation with this investment. This investment allows us to increase our exposure to a compelling sector driven by demographic trends that has shown to be resilient to various market cycles. We have seen the importance of investing alongside experienced managers in specialized real estate sectors like healthcare and senior living and look forward to benefitting from Elevation’s leading expertise and track record in the space.”
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.
