Fortwell Capital has provided a €43.7m (£40m) revolving credit facility to Scottish care home developer Simply UK. The deal is Fortwell’s first in Scotland and its third commitment in the care home and retirement living market in 2019. The credit facility will enable Simply UK to become the largest care home developer in Scotland, with an initial €8.2m (£7.5m) tranche being used to fund the development of a new 74-bed care home in the Bridge of Weir, on the site of a former car garage and MOT centre.
In addition to developing in Scotland, Simply UK will use the loan facility to support its strategy of targeting prime opportunities in England as well as the growth of its care home operating arm, as it looks to manage some of the care homes it develops.
This latest deal further demonstrates Fortwell’s commitment to supporting experienced care home and retirement living developers and expanding into new regional markets, with a view to enabling the delivery of over 1,600 beds across the UK over the next three years. Fortwell currently has three facilities totalling €147.4m (£135m) to support care home and retirement living projects.
Arthur Jennings, Managing Director of Fortwell Capital commented: “Fortwell is delighted to be supporting Simply UK on their growth to becoming Scotland’s largest care home developer as it begins to build its operating arm. We have been impressed with Simply UK’s construction and development track record, and its future ambitions. The care home sector continues to be a key area of focus for Fortwell Capital, as the UK’s ageing population continues to drive demand for beds in this sector.”
Gary Sharp, Managing Director of Simply UK commented: “Fortwell has been fully engaged and supportive from our first meeting. The team understands the care sector across the UK and has the capital available to make a difference to growing developers.”