Healthcare real estate investment manager Elevation Advisors has launched a new strategy with funding provided by StepStone Real Estate to provide flexible debt financing to senior living developers and operators across the UK.

Elevation will look to provide whole loans, sized in excess of £20 million, to developers and operators with strong track records in the UK senior living sector to fund developments and/or acquisitions.

The strategy has been seeded with a loan extended to Oakland Care, an elderly care developer and operator, which is backed by private equity growth investor Synova. Oakland operates six luxury care homes with 434 beds across London and the Southeast, with a further three care homes under construction and more land sites in the pipeline.

The loan commitment offers an integrated financing solution spanning the construction and lease up phase of each development allowing Oakland to increase the number and rate of new elderly care communities it develops and operates in the Southeast of England.

Andrea Auteri, managing partner at Elevation said: “Elevation is thrilled to be able to bring to the UK senior living market a compelling debt offering. The strategy will be the third pillar of growth for Elevation and work complimentarily alongside our triple net lease and joint venture platforms. We are excited to grow our relationship with SRE. We have been impressed by Oakland’s success story and are delighted to have the opportunity to partner with its experienced management team and shareholders to accelerate the growth of their business.”

Josh Cleveland, partner and head of EMEA for SRE, added: “This investment allows us to increase our exposure to a compelling sector driven by demographic trends that has shown to be resilient to various market cycles. We have seen the importance of investing alongside experienced managers in specialised real estate sectors like healthcare and senior living and look forward to benefitting from Elevation’s leading expertise and track record in the space.”

Date published: August 16, 2021

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