Fortwell Capital has increased a revolving credit facility for luxury care and retirement homes developer and operator, Cinnamon Care Collection, to £65m.
The increased lending will enable Cinnamon Care to grow its development pipeline with five purpose-built care home set to begin construction across the UK in H1 2021.
Nick White, Associate Director, Fortwell Capital, said: “We always keep a close eye on our borrowers’ development pipelines, and invariably ensure our facilities are revolving so funds can easily be drawn as required. 2020 has been an extraordinary year which has sadly brought the current mixed-quality of senior living assets and need for more fit-for-purpose care home space into sharp focus.
“Cinnamon Care Collection is an exciting outfit with a strong track record of both building high quality care homes, and operating them to an exceptional standard. We’re pleased to take our relationship a step further with the facility extension, which will enable us to continue supporting the delivery of their high spec pipeline next year.”
Fortwell Capital first provided a debt facility to Cinnamon Care Collection in July 2020, when £12.5m was allocated for the construction of two new care home projects in the West Midlands, including an 80-bed home and 64-bed home in Stourbridge and Sutton Coldfield, respectively.
The extension of the facility takes Fortwell’s total lending to the care home sector to over £300m as the lender progresses its strategy of financing innovative UK developers, which are actively addressing the national shortage of fit-for-purpose space to accommodate the UK’s older generation. Fortwell Capital is now one of the UK’s leading finance partners to the senior living sector, enabling over 3,000 new care beds since 2014.
Stuart Norris, Cinnamon Care Collection, said: “Fortwell Capital has been an exemplary funding partner to date, demonstrating an acute understanding of our business and the wider care sector. The team’s specialist expertise has been central to the quick progress we have made at our Stourbridge and Sutton Coldfield sites, and we welcome their extended support as we look to progress a number of new sites next year.”