Leumi UK provides £100 million revolving credit facility to LNT Care Developments to support expansion of care home portfolio

Real estate lender Leumi UK has provided a £100 million revolving credit facility (RCF) to LNT Care Developments, the UK’s largest care home developer, to support the continued expansion of its nationwide care home portfolio. The facility represents Leumi UK’s largest healthcare financing to date and further strengthens its long-standing relationship with LNT.

LNT has developed over 250 sites, representing in excess of 16,500 beds, and with this additional firepower it aims to build a further 15-20 care homes over the next 3 years.

The RCF will provide flexible funding across land acquisition, development and investment activity within LNT’s pipeline. It will initially support five schemes, comprising 330 beds in total, all delivered through LNT’s standardised, vertically integrated operating platform. The five assets are located in Wymondham, Norfolk; Bourne, Lincolnshire; Braunton, Devon; Thornbury, Gloucestershire; Hooton, Cheshire; and Newcastle Great Park, Tyne & Wear.

The UK care home market benefits from strong underlying supply and demand dynamics. New supply remains constrained by rising development and operating costs, while a significant proportion of existing stock is outdated. At the same time, demand is expected to grow steadily, supported by the UK’s ageing population and increasing care needs among older age groups.

Matt Lowe, CEO at LNT Care Developments said: “We are thrilled to build on our trusted partnership with the Leumi UK team, whose support gives us the flexibility we need to deliver our pipeline of new sites. We have ambitious growth plans and Leumi UK is an important funding partner as we continue to develop high-quality, best-in-class care facilities across the UK.”

Guy Brocklehurst, Relationship Director at Leumi UK, added: “LNT is a leading care home developer with a proven operating model, and we look forward to working with the business as it continues to expand its portfolio. This landmark transaction for Leumi UK represents our largest healthcare facility to date and demonstrates our ability to tailor financing solutions that support a top-tier, scalable platform. It reflects the strength of our relationship with LNT as well as our conviction in the long-term prospects for the care sector in the UK.”