MACC secures backing for Birmingham care home

MACC Care Properties is set to progress plans for a £25m new facility in Hall Green after tying up a funding deal with Paragon Development Finance.

The firm is eyeing up a brownfield site on Shaftmoor Lane for a 44,132 sq ft, 71-bed care home, which would become the operator’s 21st care home to date.

Development finance firm Paragon says the transaction reflects its ongoing diversification drive, as the lender broadens its support beyond its core residential development offering to respond to what it describes as shifting demand and changing demographics.

Alongside residential housing, the division has increasingly focused on sectors such as build‑to‑rent, later living, purpose‑built student accommodation and, most recently, care homes.

Steve Mountain, senior relationship director at Paragon Development Finance, said: “This was a client‑led opportunity that required careful structuring over an extended period, but by working collaboratively with the borrower, we were able to deliver a facility that reflects both the strength of the scheme and the long‑term fundamentals of the care home sector.

“Diversification remains a key strategic focus for Paragon, as we continue to support sectors that are critical to meeting the UK’s evolving housing and care needs.”

The deal was led on behalf of Paragon by Steve Mountain, senior relationship director, with support from denior portfolio manager, Darren Ellis, and portfolio manager, Olly Das.

By 2050, around one in four people in England is expected to be aged 65 or over, while the number of people aged over 85 continues to grow rapidly, according to research by think-tank, the Nuffield Trust.

Sector forecasts point to a requirement for around 37,000 additional care home beds over the next decade, placing increasing emphasis on the delivery of new, purpose-built facilities.

Dr Naz Nathani, Chief Executive of MACC Care Group, added:  “This latest scheme reflects our strong track record of consistent delivery across both development and operations, and our focus on scaling a clinically led, innovative care platform, creating high-quality, luxury care environments.

“As we continue to expand our platform, we look forward to building on this relationship and undertaking further transactions with Paragon to support our ongoing growth.”