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L&G loans £51m to UK care home operator
15 May 2014
Believed to be first loan of this kind to care home sector
Legal & General (L&G) has agreed a £51m
($85.5) ten-year loan to the LNT Group, an owner and operator
of care homes across the UK.
It is believed to be the first time that tailored bilateral
institutional debt finance has been provided to the care home
sector, according to L&G.
"We are extremely pleased to work with the LNT Group, providing
the stable financing that clearly benefits a sector such as
this and which traditional markets are now less likely to be
able to provide," said Laura Mason, director of direct
investments at L&G Capital.
The loan is secured against a portfolio of mature care homes
and will be used to refinance LNT's existing bank debt,
releasing capital to support the company's plans for strategic
LNT, parent company of Ideal Carehomes currently operates 36
homes across the UK and aims to build between six and eight new
care homes per year, which would create around 500 jobs on an
"Supporting our future growth, the long term facility not
only gives the LNT Group stability but also releases necessary
capital to underpin development opportunities and job
creation," said Lawrence Tomlinson, chairman of the LNT
This deal forms part of L&G's larger UK housing and
infrastructure investment strategy. One of the six UK insurers
committed to investing £25 billion in the UK by 2018,
L&G has invested £5.5bn in UK infrastructure projects
to date, including a range of supply side housing.
In Q1 2014, L&G agreed to forward fund and purchase five
care homes in Suffolk with Care UK for £31m.
L&G also acquired 13 care homes let to Methodist Care Homes
for £70m in Q4 2013.
Read more about public infrastructure investment in the UK [ http://bit.ly/1nRlnPb ].