Broadwood Capital has completed its maiden loan in the healthcare sector in partnership with Future Growth Capital, the independent private markets solutions business formed by Standard Life and Schroders.
The £7.75m facility has been provided to a healthcare construction specialist on a 15-month term to fund the acquisition and subsequent conversion of an existing leisure property in a major Scottish city into a state-of-the-art dedicated healthcare diagnostics centre.
The facility will fully fund costs associated with upgrading, refurbishing and repositioning the asset, with work on the new centre expected to be completed in early 2027.
Dan Smith, CEO of Broadwood Capital, said: “Having firmly established Broadwood in the later living space, it is a natural progression for us to broaden our investment strategy to include healthcare lending. The healthcare demographics are very similar to those for care homes, with people living longer and needing care later into their lives.
“We are huge advocates of needs-based real estate and associated social infrastructure projects and we have strong conviction for sectors where underlying structural change is leading to an acute requirement for new development. With a policy shift towards delivering more healthcare and essential services locally in communities, we expect to see an increase in demand for development funding where we can apply our lending expertise to specialist asset classes.”
Kristina Foster, head of real estate debt at Future Growth Capital, added: “We are delighted to be supporting the delivery of a high quality diagnostics facility, which will play an important role in expanding access to advanced healthcare services in Scotland. This financing demonstrates the strength of our real estate debt strategy and our ability to structure compelling opportunities in specialist sectors such as healthcare, while delivering attractive, risk-adjusted returns for UK pension savers. We are also pleased to collaborate with Broadwood Capital on this transaction and look forward to further opportunities together.”
