BAE pension fund deal with ExtraCare Charitable Trust

Chris Skelton
Chris Skelton

ExtraCare Charitable Trust Increases Funding in Partnership with BAE Systems Pension Funds Investment Management Limited (BAPFIM)


The ExtraCare Charitable Trust has completed a £35 million private placement with BAPFIM. The additional funding will build on the recently announced £150 million Lloyds Bank re-financing. It partly repays the Lloyds facility, whilst increasing the total funding to £155 million. The facility will support ExtraCare’s growing portfolio and is for a period of fifteen years.


Established in 1988, the Coventry-based charity operates 4,020 mixed-tenure homes in 31 retirement villages and schemes, care for those who need support to remain independent and provides an inspirational lifestyle for over 4,500 people aged 55 and over.


The latest funding package will support the Trust’s three-year growth plan which will see the construction of an additional retirement village in Longbridge to add to the four villages already opened in Birmingham and an additional village planned in neighbouring Solihull.


ExtraCare also plans to extend its geographical footprint, opening schemes 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 charity’s headcount by around 150 staff.


Chris Skelton, Finance Director at 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 affordable, alternative to traditional nursing or care homes.


“We are delighted to receive this new funding from BAE. It gives us additional flexibility and support 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 South Gloucestershire.”


David Cryer, Senior Portfolio Manager at BAPFIM, said: “We are extremely pleased to provide this new tranche of funding to ExtraCare, which reflects our commitment to the housing and not-for-profit sectors. We look forward to continuing our excellent relationship with ExtraCare and seeing the charity achieve its near-term growth plans.”


Commenting on the deal, David Madoc-Jones of KPMG Debt Advisory, said: “We are delighted to have advised ExtraCare on securing this refinancing deal on attractive terms. The additional funding will enable the business to fulfil its development pipeline and provide more homes and support for older people aspiring to live independently in high quality, safe and secure retirement communities.”



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