The leverage loan-on-loan facility has been secured by the Broadwood Later Living Sustainable Construction Finance Fund to develop sites in London, Staffordshire and Lancashire.

OakNorth has been a funding partner of Broadwood’s since 2022, providing over £70m of senior back leverage in that time.

These new sites will be custom built, provide 100% ensuite wet rooms and meet the sustainability criteria of the Broadwood fund.

Each of the three customer loans are to separate sponsors, all of which are specialist care home developers and operators.

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“We have supported Broadwood since its inception, and have always appreciated the team’s depth of experience in development finance, their institutional approach to credit risk and underwriting, and their strong and efficient governance, which together ensures decisions are reached on a detailed and informed basis,” said Priya Chauhan, director of debt finance at OakNorth.

“Broadwood’s highly experienced principals, led by Dan Smith and James Tarry, have deep knowledge across all aspects of real estate development and investment finance, and just like at OakNorth, there is a focus on optimising customer outcomes.

“We look forward to continuing to support Broadwood on future transactions.”

Dan Smith, CEO at Broadwood Capital, added: "OakNorth has been a long-term and supportive funding partner of ours and we value its commercial, entrepreneurial, responsive, and collaborative approach.

“OakNorth’s roots as a founder and entrepreneur-led bank align with Broadwood’s culture and approach, making them an ideal partner.

“We see this initial £31m facility as the first step in a larger relationship for Broadwood LLSCF Fund as we secure additional investor commitments for our strategy.”