Elevation Advisors has announced that during the second quarter of this year it completed the first closing for Elevation Credit Partners III (ECP III), securing discretionary equity commitments from global pension capital which will enable ECP III to deploy £270 million of debt financing in the UK senior housing real estate sector.

ECP III’s strategy is to provide operators and developers of UK senior housing real estate with a range of customised loan financing options including investment term loans, development loans, mezzanine loans and preferred equity. Loans will be sized between £10 million and £100 million, with loan-to-value of up to 80% and development loan-to-cost of up to 85%, over a term of two to five years and will be used to support acquisitions, developments, lease-up, refinancing and recapitalisation.

The capital raise is Elevation’s third private credit vehicle.

Elevation stated that ECP III “will focus on the delivery of positive outcomes in the senior housing market and combine both high-quality sustainability performance with the delivery of positive social outcomes within the sector. Through targeted deployment utilising Elevation’s robust due diligence process and frameworks, ECP III will seek to benefit service users, employees and local communities”.

Zach Smith, investment director at Elevation said: “Following the successful deployment of two previous senior housing private credit funds, we are delighted to raise capital that will further increase the supply of much-needed senior housing and elderly care beds, and provide sustainable, tailored funding solutions to high-quality operators in the UK. We are committed to supporting this critical sector and the increased debt financing capability offered by ECP III will provide top-tier borrowers with greater flexibility and increased choice to accelerate their business growth and support their existing portfolios. With the chronic undersupply of elderly care beds and senior housing in the UK and increasing demand from long-term demographic trends, we are delighted to give investors access to this underserved market and provide vital capital to support positive social outcomes across the UK.”

ECP III has completed its first transaction providing financing to LNT Care Developments and Oyster Care Homes. 

The senior debt facility provides investment term loans to refinance development lending and provide working capital for three newly constructed care homes in Bexhill, Halling and Yeovil operated by Oyster Care Homes. The homes, comprising 198 wetroom en suite beds, are built to the latest environmental standards.

Smith said: “We are excited to announce this first transaction for our new credit fund focused on offering flexibility and increased choice to best-in-class borrowers. We are delighted to expand our partnership with LNT by providing funding to support its portfolio of next generation real estate with excellent environmental credentials and to begin a partnership with Oyster Care Homes with their excellent management and home staff teams, leading care quality and community engagement. By offering financing that enables high-quality developers and operators to ramp up their business plans, we can support the essential provision of purpose-built senior accommodation and delivery of high-quality care, while giving investors access in scale to this compelling sector.”