Shawbrook’s £2bn property funding provision hints at resilience of care market

  • 26th February 2024

Shawbrook’s development finance business has provided more than £2bn in funding for property developers in the UK, including financing a number of care home schemes.

The specialist team has been able to support a wide range of significant and often-complex projects through its structured funding solutions. These include the facilitation of a five-year funding arrangement for the construction of three state-of-the-art 66-bed care homes.

Its core development finance loans are further bolstered by complementary finance solutions that suit developer’s often urgent and complicated needs. This includes the imminent launch of its Planning Assistance Loan, a short-term loan to help developers improve the planning they already have for a site, which can then switch to a tailored development finance loan to construct the project.

Terry Woodley, managing director for development finance at Shawbrook, said: “Despite facing significant hurdles in recent years, more than a third of developers in the UK (34%) have been able to expand their business in the last 12 months, demonstrating that the sector has remained resilient and flexible in the face of a volatile market.

“We’re proud to be at the forefront of lenders who are willing to support established developers across the country, providing not just the knowledgeable service they deserve but also the flexibility and certainty they need from their funder.”

As well as care homes and residential housing schemes, Shawbrook’s premium offering has been sought by experienced property developers focusing on a range of developments including residential, commercial and mixed-use schemes, high-value residential projects, student housing, co-living, and phased development schemes.

Matt Lowe, chief executive of LNT Care Developments, which has built over 200 new homes, with 20 schemes currently in progress, said: “The team at Shawbrook were able to offer a bespoke facility to enable us to drive forward our commitment to building the country’s leading care home portfolio.

“It was important for us that they provided a facility which not only enabled the construction of three new homes, but also supported the operational side of the business once construction of the care home is complete.

“It was great to work with a team who combined their knowledge in development and healthcare to structure a transaction in a way that worked for all parties.”

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