Fortwell Capital, a principal lender to developers and investors in the UK real estate sector, has agreed a new £12.5m revolving credit facility with luxury care and retirement homes developer and operator, Cinnamon Care Collection.
The facility will initially be used to fund the development of two new care homes in the West Midlands, including an 80-bed home and 64-bed home in Stourbridge and Sutton Coldfield (pictured), respectively.
Dan Smith, CEO, Fortwell Capital said: “We strongly believe in the resilience of the care home sector, and are delighted to push ahead with Cinnamon Care Collection. We are witnessing an acceleration in the demand for more purpose-built care beds as a result of COVID-19 and are focussed on supporting developers that are actively addressing the needs of the UK’s older generation with the construction of high-quality modern facilities.”
The deal marks the start of a planned long-term relationship between the two companies, which will see Fortwell Capital support Cinnamon Care Collection’s development pipeline over the next three years.
Stuart Norris from Cinnamon Care Collection said: “We are very pleased to have secured development funding for our exciting new developments at Stourbridge and Sutton Coldfield with Fortwell Capital. Cinnamon has a long-term pipeline of luxury care home and retirement developments, and we look forward to building upon the partnership we have formed with the team at Fortwell Capital to support these future projects.”
Fortwell Capital has been lending to the senior living sector as a development finance partner since 2014 and has enabled over 2,800 new care beds. The principal lender enjoyed a record year in 2019, leading the development of one-in-six of every new care beds under construction in the UK with over £100 million in development finance.
In this latest transaction, Fortwell Capital was advised by Blake Morgan, Cushman & Wakefield, Carterwood and Currie & Brown. Shoosmiths acted on behalf of Cinnamon Care Collection.