Land and property owners often seek financing to help to fund some of the costs of constructing property from which they will conduct their business, once the property is complete. Loans provided during this phase of a project are typically lent in stages, with more money advanced as the property is built (and so becoming more valuable), and they are often secured against the borrowing business itself and the property it is helping to build. Opportunities also exist in sectors that we know well to acquire sites once planning permission is in place, and to develop real estate on an institutional level, such as schools, care homes and retirement villages.
Our construction financing business
As life expectancy in the UK increases, so does the need for suitable accommodation and services to support our ageing population. This means that there’s a large and rapidly growing market in the UK for high-quality healthcare property, as well as a need for investment to make sure this growth continues.
We provide financing to companies that are constructing healthcare facilities, including retirement communities, private hospitals and care homes, on land that the companies own or lease. We also provide loans to companies that are constructing renewable energy sites.
These loans are repaid once the building phase is complete, either through external financing by a bank or through a sale of the site. In the case of some sites, instead of having our loan repaid, we sometimes choose to acquire the completed site or property development company itself to own and operate in the longer term.
Wadswick Green, one of the retirement villages that we have provided construction financing to, is now owned by Fern and is home to its first residents.
We also helped to fund a new state-of-the-art private hospital in Ashford, Kent, which celebrated its completion with an open day on 3 March 2016.
We employ around 100 people in this part of our business.
What we do
Since 2014, we have provided more than £170 million of construction financing to companies that are developing property in the healthcare sector