OakNorth – the bank for entrepreneurs, by entrepreneurs – has completed a £12m loan to Frogmore, the UK-focussed, fully integrated real estate investment manager which has invested and sold over £7bn of real estate since 1995.
Frogmore will use the capital to acquire a four-storey, serviced apartment block and has submitted a planning application to convert it into a 35-bedroom care home, focussing on providing accommodation for those suffering from dementia. The site, situated in Prince’s Square in the City of Westminster, occupies a prominent position in the south eastern corner of the Square and is well situated within Zone 1, with access to Bayswater Underground station, other transport links only a short walk away.
Commenting on the transaction, Andy Rogers, Director and Group Treasurer said: “The City of Westminster is estimated to see a 55 percent increase in people diagnosed with dementia between 2015 and 2030, as well as being projected to see an increase of 800 people diagnosed annually, making it the second highest increase in need of any London Borough. Research shows that despite this, Westminster has the second lowest number of registered beds for dementia, with only three beds for every 100 patients.
“We are delighted to have the support of OakNorth to bring this much-needed new care facility to the area and, alongside our specialist partners at Innovative Aged Care, to provide vital care to meet a community need. As always, the team at OakNorth has worked to get the deal done in the time frame we needed so that we could submit a planning application permission quickly.”
Damien Hughes, Property Finance Senior Director at OakNorth commented: “With its central location and proximity to many of the capital’s most famous landmarks, Westminster is a highly desirable area but it has a rapidly ageing population and therefore, a need for more care homes and specialist housing. Frogmore has a wealth of property expertise and their partners, Innovative Aged Care has enviable experience in this area. The team is thus well positioned to take advantage of this demographic trend.”