Elevation Advisors has secured global pension capital commitments in the first close of its latest fund, enabling it to deploy £270m (€311.6m) of debt financing in the UK senior housing real estate sector.

The specialist investment manager in the European healthcare real estate sector said Elevation Credit Partners III’s (ECP III) 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.

ECP III will provide loans ranging from £10m to £100m, featuring up to 80% loan-to-value and 85% development loan-to-cost, over a 2-to-5-year term, for acquisitions, developments, lease-up, refinancing and recapitalisation.

As its first transaction, ECP III has provided a senior debt financing to LNT Care Developments and Oyster Care Homes. The 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.   

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 U.K. 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.”

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