OakNorth Bank has completed an £18.5 million loan to care home operators Care Concern Group, which is using the structured finance facility to develop a new 81-bedroom care home in Aberdeen, with facilities including hair salons, cinema rooms and a library.
The funding will also be used to facilitate a sale and leaseback agreement with “a leading European fund”.
Founded in 1991 by Balbir Johal, the Care Concern Group is a family-run business consisting of 78 care homes specialising in general nursing and dementia care across the UK.
Manpreet Johal, chief executive of Care Concern Group, said: “With the number of people suffering with dementia in Scotland set to increase to over circa 164,000 by 2036, the demand for specialised care will continue rising and the need for care homes which can meet these individuals’ needs will become even more important. Our new site in Aberdeen will provide residents with the highest-quality care from our expertly trained staff, making it another strong addition to our growing portfolio.”
Deepesh Thakrar, senior director of debt finance at OakNorth Bank, added: “With an impressive average occupancy rate of 85% across its entire portfolio, Care Concern Group continues to be one of the most well-regarded and highly-performing care home operators in the UK.”
Date published: October 4, 2021