The deal was structured on a three-year facility to support the full development cycle, with flexibility to extend the term once the site becomes operational.

This loan was delivered at an LTV of 85% on a turn-key basis, rising to 65% NIC.

According to Arc & Co, this is the first care home development funded by the chosen UK challenger bank — the identity of which is not being disclosed.

Cameron Hayes, director at Arc & Co, led the deal.

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"This transaction highlights the increasing institutional interest in the UK care sector, which has lagged behind other markets like Canada, New Zealand, and Australia in terms of investment appetite and the overall quality of care,” said Cameron.

“The UK has an ageing population and requires care facilities that are fit for purpose, and which align with the long-term fundamentals of not growing obsolete from an investor perspective.

“It is great to be part of this process in a growing area of the market."