Turning Point Capital Advisory arranges £19m bridging and development facility

Turning Point Capital Advisory has arranged a £19m facility for a specialist developer and operator in the special educational needs (SEN) sector.

The funding, provided by Broadwood Capital, supports the delivery of three new SEN schools across the South of England and the Midlands, underpinning a completed turnkey portfolio valued at £47m and reflecting a LTV of 40%.

The facility combines two tranches over a 24-month term.

A development finance line funds construction of one school, while a bridging loan supports the two completed schools ahead of a longer-term refinance.

Completing the deal involved six firms of solicitors working across two jurisdictions.

The structure was created to fund both the build phase and the period in which a newly opened school establishes occupancy.

Marcus Emadi, CEO at Turning Point Capital Advisory, commented: “Blending development finance with a bridging loan let the sponsor fund both construction and the lease-up phase under a single structure, which is exactly what operational social infrastructure of this kind needs.

“In a market where deals are harder to fund, that depth of diligence from the outset counts for a great deal.

“Broadwood Capital worked in a controlled, efficient way to get the deal over the line.

“With SEN places in short supply, we were glad to help direct capital towards provision that will make a real difference for the children and families who rely on it.” Turning Point Capital Advisory acted as debt advisor to the sponsor and arranged the facility.

The borrower, who has requested to remain unnamed, was advised by Chen Ikeogu of Trowers & Hamlins, with Louise McMahon of Hill Dickinson acting for Broadwood Capital.

Valuation was led by Rob Hutchins of Anderson Wilde and Harris, working alongside Morgan Allen of Morgan Allen Property Surveyors.

Dalbergia, led by Simon Burke, acted as quantity surveyor and monitoring surveyor, and insurance was arranged through Lockton.

The Broadwood Capital team was led by James Tarry and Alastair  Stanley.

Chen Ikeogu, banking and finance partner at Trowers & Hamlins, commented: “Trowers & Hamlins is delighted to have completed its first transaction for a new entrant to the UK special educational needs school market.

“We advised the group on its funding arrangements with Broadwood Capital, which enabled the group to release funds to its equity partners and to continue to grow its footprint in the UK SEN school market.”

Rob Hutchins, director at Anderson Wilde and Harris (AWH), said: “AWH, working alongside Morgan Allen Property Surveyors, provided strategic valuation advice to a new entrant to the SEN sector.

“This marks the beginning of a strategic partnership with ambitions to build a leading group within the SEN sector, and we look forward to supporting that journey as it grows.”