Fortwell Capital provides £40mn loan facility to specialist care home developer LNT

London, 13 February 2018

Fortwell Capital Limited has extended a revolving development finance facility it initially provided to LNT Care Developments Limited in 2014 by 3 years and increased the amount available to £40mn.

Since signing the original facility in December 2014, Fortwell has funded the acquisition and construction of 17 care homes across the UK, providing over 1,000 beds with a total value of circa £150mn.

LNT Care Developments Limited is the UK’s leading purpose-built residential care home developer delivering fully equipped and furnished luxury care homes for the elderly residential care sector.

In addition to extending and increasing the facility, the amended loan permits LNT to undertake larger projects. This will also give LNT more flexibility to expand their core care home development activity to more areas of the country.

The renewed facility is for a further 4.5 years and allows LNT to continue to develop their core care home offerings and to develop a single care home up to £15mn in value.

Arthur Jennings, Head of Real Estate Finance at Fortwell Capital said: “Fortwell is delighted to continue the long-standing relationship with LNT. Over the past 3 years LNT have successfully developed and sold 17 care homes through the Fortwell facility. We anticipate this renewed facility will allow LNT to develop an estimated 1,500 care home beds with a total GDV in excess of £200mn over the next 3 to 4 years. There continues to be a notable shortage of new purpose-built care homes in the UK and Fortwell is proud to be supporting the provision of quality accommodation in this area and backing a best in class team at LNT.”

Matt Lowe, CEO at LNT Group said: “The support of Fortwell Capital has been instrumental in the development of our care homes over recent years. The team at Fortwell fully understand our business – their unique experience and understanding allows them to adopt a very flexible approach to align with the specific circumstances each individual care home development faces. Extending this significant source of capital will give us even more options for developing the portfolio over coming years, and in doing so meet the needs of current and future residents.”

Dan Smith further commented: “The loan to LNT continues our strong start to 2018 with £64mn of lending now completed in January, transactions which underline our continued focus of supporting and funding developers on larger and more complex real estate opportunities across a broad range of sectors.