Allica Bank launches commercial mortgages for care homes



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Allica Bank has introduced a new specialist commercial mortgage product for care homes run by independent or small group operators.

The lender will provide bespoke funding based on an operator’s business plan and proposal, with a focus on smaller firms, including those looking to acquire their first care home, single-home operators looking to expand into second or third homes, or those acquiring other operators to grow their portfolio.

The new product offers loans between £500,000 and £5m at up to 70% LTV, priced at 4% plus Bank of England base rate, for terms of up to 25 years.

“The elderly care sector has had a difficult two years,” said Nick Baker, managing director for intermediaries at Allica.

“However, the SME care market was underserved long before Covid-19, with many lenders having pulled out of the space in recent years.  

“There is a real opportunity for Allica to support these underserved businesses by offering the level of tailoring and understanding needed to properly support their growth ambitions in what is an increasingly in-demand market.

“Many care home operators are keen to grow their businesses and expand their offering, and we’re excited to be able to offer the funding they need to take that next step.”

To spearhead the expansion, the bank has hired two healthcare lending specialists, Anthony Newman (pictured above) and Adam Breakspear, who will provide their expertise to brokers and their clients on issues unique to their sector, such as ethics and regulatory compliance, staffing challenges, and occupancy levels.

Both Anthony and Adam join from Allied Irish Bank, where they worked as associate director for corporate healthcare banking, and healthcare specialist, respectively. 

“The elderly care sector is dominated by a number of big operators, often meaning smaller operators struggle to get a foot in the door when looking for access to funding,” commented Anthony.

“We will be focused specifically on those operators that have been providing fantastic care to their local communities, and new entrants to the market who have the skills and passion to provide care to the elderly.”

Adam added: “We have a deep understanding of the sector, which is so critical in this complex industry. 

“This, combined with extensive SME experience and a genuine passion for empowering them to succeed, means we are extremely well placed to support our brokers and their care home clients.”

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