Fortwell Capital has agreed a new €13.7m (£12.5m) revolving credit facility with luxury care and retirement homes developer and operator Cinnamon Care Collection. The facility will initially be used to fund the development of two new care home projects in the West Midlands, including an 80-bed home and 64-bed home in Stourbridge and Sutton Coldfield respectively. The deal marks the start of a planned long-term relationship between the two companies, which will see Fortwell Capital support Cinnamon Care Collection’s development pipeline over the next 3 years.
Through the new partnership, Fortwell Capital also advances on its UK-wide strategy, focussing on opportunistic projects in strong regional markets outside of central London, while demonstrating a strong belief in the demographic fundamentals that are driving the need for more fit for purpose care homes in the UK. Fortwell Capital has been lending into the senior living sector as a development finance partner since 2014 and is proud to have enabled over 2,800 new care beds to date. Furthermore, the principal lender enjoyed a record year in 2019, powering the development of one in six of every new care bed under construction in the UK with over £100 million in development finance.
Dan Smith, CEO, Fortwell Capital said: “We strongly believe in the resilience of the care home sector, and are delighted to push ahead with Cinnamon Care Collection. We are witnessing an acceleration in the demand for more purpose-built care beds as a result of Covid-19 and are focussed on supporting developers that are actively addressing the needs of the UK’s older generation with the construction of high-quality modern facilities."
Nick White, Associate Director, Fortwell Capital added: “We have been impressed by Cinnamon Care Collection’s exceptional design approach for some time, demonstrating a true understanding of what is required to provide the highest standard of care in the current market. We look forward to working closely with Cinnamon Care Collection to support their immediate plans and longer-term pipeline and would like to thank our advisors at Blake Morgan, Cushman & Wakefield, Carterwood and Currie & Brown for their outstanding efforts in making this deal happen.”
Stuart Norris from Cinnamon Care Collection said “We are very pleased to have secured development funding for our exciting new developments at Stourbridge and Sutton Coldfield with Fortwell Capital. Cinnamon has a long-term pipeline of luxury care home and retirement developments, and we look forward to building upon the partnership we have formed with the team at Fortwell Capital to support these future projects”