The ExtraCare Charitable Trust has completed a £150million refinance with Lloyds Bank to support its continued nationwide expansion.
Established in 1988, the Coventry-based charity provides 3,849 homes for life in 31 retirement villages and schemes, offering care for those who need support to remain independent.
The charity currently operates four retirement villages in Birmingham and two in Milton Keynes, all of which were constructed with Lloyds Bank funding support, with a fifth also due to open in Longbridge in 2017.
The latest funding package will support the Trust’s three-year growth plan, which will see the construction of one village in Coventry and another in Solihull. It also plans to extend its geographical footprint across the UK, opening villages in South Gloucestershire, Bedford and High Wycombe as part of its on-going development strategy, meeting the increased demand for retirement facilities in line with the growing ageing population.
The new sites look set to increase the business’ headcount by 200, bringing its total number of employees across all sites to over 1,600.
Mick Laverty, chief executive of The ExtraCare Charitable Trust, said: “Our ethos here at The ExtraCare Charitable Trust is to provide safe, comfortable communities for the older generation to enjoy their retirement. Our long-term plan is to deliver this across the UK, providing an alternative offering to nursing or care homes.
“The on-going funding support provided by Lloyds Bank gives us a vital platform for growth and the capabilities to pursue a pan-regional expansion plan which will see us grow our presence within the Midlands, as well as further south to Buckinghamshire and Gloucestershire.”
David Hykin, relationship director at Lloyds Bank Commercial Banking, said: “The refinance has provided The ExtraCare Charitable Trust with the resource to capitalise on the growing demand for high quality retirement accommodation, and roll out its facilities across wider geographies. In a competitive industry, this will be a valuable catalyst to ensure the business can continue to go from strength-to-strength and consolidate its position as a major player in the sector.”
The charity encourages an active and inspirational lifestyle for more than 4,400 people aged 55 and over. This unique holistic approach was validated by Aston University in a recent three-year research project, which found that ExtraCare residents experience a 46 per cent reduction in GP visits over the course of a year. The Charity’s approach results in significant savings for NHS budgets – over 12 months, total NHS costs for ExtraCare residents can reduce by 38 per cent.
ExtraCare also raises funds through a network of around 60 Charity Shops. These funds are used to support the more vulnerable people living in ExtraCare’s retirement villages and schemes, through the Charity’s Enriched Opportunities Programme® (for people living with dementia), care services and health and well-being projects.
The ExtraCare Charitable Trust was advised by KPMG throughout the refinancing process. The ExtraCare Charitable Trust received legal advice from Pinsent Masons. Lloyds Bank’s legal advice was provided by DLA Piper.