Omni Capital agrees £30m Committed Debt Facility with LNT Construction

By Bridging Loan Directory 4th February 2015

Omni Capital, the CPC Group-owned real estate lender, has agreed a £30m committed debt facility with LNT Care Developments Limited, a specialist developer of high quality turn-of-key care homes, and a wholly-owned subsidiary of LNT Construction (“LNT”).

The new facility will enable LNT to continue to expand its development pipeline into more areas of the UK and complements LNT’s current financial arrangements to accelerate its development growth.

The debt facility has a term of four-and-a-half years and was arranged through Omni Capital Structured Finance, the lender’s specialist division catering to real estate professionals seeking substantial funding for more-complex development projects.

Lawrence Tomlinson, chairman of LNT Group said:

“Omni Capital is a perfect partner for us. As property experts, they understand the nature of our construction business, thus streamlining the decision-making process. They have a clear appetite to provide creative structured solutions which fill the gap left by the continued absence of mainstream bank lending.

“I must also thank Chris Babington, managing director of Hervines Capital, for his advice on the deal. This is the second time we have worked with Chris and his team and his experience, understanding and insight have been advantageous on both occasions.”

Babington added:

“It has been a pleasure working with both LNT and Omni on this deal. It soon became clear that LNT’s proposition was an ideal fit with Omni’s desire to lend to the residential development sector. I’m confident this partnership will continue to grow.”

LNT has long been a sector leader, developing fully en-suite care homes on behalf of care providers across the UK. With demographic pressures on care services rocketing, the demand from operators for new, purpose-built homes is rapidly increasing.

Dan Smith, head of structured finance at Omni Capital, said:

“We were impressed by LNT’s proposition, which was based on quality and deliverability. Whilst we do not routinely cater to the care homes market, this demonstrates our appetite for expansion into new areas when circumstances are right. LNT is a market leader, and their unique experience as both a care provider and developer made them stand out from the rest of the industry.”

He continued: “Their homes are designed with a true understanding of the importance of the built environment in helping deliver quality care. Coupled with an ability to identify a development site based on demographic need and local under-provision, their proposition will ensure long-term demand for their properties.”