Digital bank, OakNorth, has completed loan-on-loan facilities, totalling £31m, to Broadwood LLSCF Lending 1, a real estate credit fund backed by Broadwood Capital and Aviva Investors.

The capital has enabled the fund to support three new care home developments delivering 250 care beds.

The homes are all purpose built, provide 100% ensuite wetrooms, meet the sustainability criteria required of Broadwood LLSCF Fund, and are in strong UK locations where there is high demand for new-build care homes. ]

Each of the three customer loans are to separate sponsors, all of which are specialist care home developers and operators.

Dan Smith, chief executive of Broadwood Capital, said: “The UK’s rapidly-ageing population, structural shortfall in specialised later living housing, and limited availability of construction finance, means there is significant growth potential in the Broadwood LLSCF Fund.

“OakNorth’s roots as a founder and entrepreneur-led bank align with Broadwood’s culture and approach, making it an ideal partner.

“We see this initial £31m facility as the first step in a larger relationship for Broadwood LLSCF Fund as we secure additional investor commitments for our strategy.”

Dan Smith

Priya Chauhan, director of debt finance at OakNorth, added: “We have supported Broadwood since its inception and have always appreciated the team’s depth of experience in development finance, their institutional approach to credit risk and underwriting, and their strong and efficient governance, which together ensures decisions are reached on a detailed and informed basis.

“Broadwood’s highly-experienced principals, led by Dan Smith and James Tarry, have deep knowledge across all aspects of real estate development and investment finance, and just like at OakNorth, there is a focus on optimising customer outcomes.

“We look forward to continuing to support Broadwood on future transactions.”