OakNorth supports increased demand for elderly care with £19.5m package
Business bank OakNorth has provided a £19.5m loan to growing national care firm Care Concern Group.
The London-based SME bank has provided the facility to support the sale and leaseback to investment service Alpha Real Capital operating care homes.
Founded in 1991, Care Concern Group operates 44 care homes in Scotland, with a further 13 currently in development.
The group intends to enhance amenities at its sites in order to meet an anticipated future demand for elderly care facilities.
Manpreet Johal, CEO of Care Concern Group, explained: “The UK population is ageing rapidly, with the number of people over the age of 85 years old forecasted to more than double in the next 20 years.
“A substantial minority of this age group will need some form of residential care which can only be provided in a care home or hospital.
“It is with this in mind that our focus is firmly on raising the standards within the care sector, offering a range of unique services designed to enhance the at-home experience, such as: spas, gyms, wellness rooms, and a library, as well as facilities specifically for those with dementia such as reminiscence rooms and specialist gardens.”
Commenting on the deal, Deepesh Thakrar, senior director of property finance at OakNorth, said: “Annual spending on residential care for older people has risen dramatically from £9.3 billion in 1995 to £15.9 billion in 2017, with Scotland remaining one of the hotspots for care home investments in the entire UK.
“With an average occupancy rate of 90 percent, Care Concern Group continues to be a well-regarded and popular care home operator.
“We expect the group’s portfolio to continue to grow and look forward to working with them on future projects.”
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