Elevation Advisors has announced that its Elevation Credit Partners III senior housing credit fund has completed its first transaction, providing financing to LNT Care Developments and Oyster Care Homes.

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.

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 ensuite 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 seven care homes in locations across the south of England, with a further pipeline of homes under development by LNT.

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.”