Blackfinch Property has announced a multi-million pound development loan to support the conversion of a vacant office building into a modern private hospital.
The 24-month loan will fund the redevelopment of the property, located in a major Southwest City, transforming the disused office space into a state-of-the-art facility that includes general anaesthetic operating theatres and associated bed space. The hospital is forecast to be operational in 2025.
The project is part of a strategic redevelopment to revitalise a building that had limited prospects of returning to commercial use. Once operational, the new private hospital will provide specialist surgeries while also offering capacity to deliver NHS treatments, helping ease the burden on NHS facilities in the region.
The redevelopment of this site is part of Blackfinch Property’s ongoing commitment to supporting innovative projects that not only revitalise underused buildings but also contribute positively to local communities.
Jason Wong, Assistant Investment Manager, at Blackfinch, commented: “This project is a great example of how our funding can help bring buildings back into use while creating a long-term positive impact on the community. By supporting the development of this new hospital, we are contributing to both the local healthcare infrastructure and the sustainability of the building itself. Our move into the private hospital sector reflects Blackfinch’s ability to diversify across key areas of need.”
Blackfinch’s entry into funding private healthcare facilities follows previous investments in the care home and supported living sectors, further expanding its portfolio in healthcare related developments.
The borrower added: "It should be added that the borrowing team have expressed their welcome surprise at both how quick the decision-making process could be, and also the level of cooperation and communication provided by Blackfinch’s professional 'in house' departments.
This enabled the borrowers to take advantage of changing market conditions, enabling them to have swift, positive commitments for facilities ranging from a few million pounds at a low loan to value, to ones for amounts of monies several times more at a higher loan to value. The same level of communication also greatly smoothed the process towards draw down of funds.
The qualities of the property when complete, and the abilities of the borrowers, gave comfort that the loan could be repaid via both refinance of any outstanding debt, or by the sale of the property. The former is by far the most likely, with the owners keen for the hospital, in 2025, to be operational and providing healthcare services to the community and beyond."
As part of the project, significant energy efficiency improvements are planned, with the building’s Energy Performance Certificate (EPC) rating expected to rise from D to B. This aligns with Blackfinch Property’s commitment to supporting environmentally responsible projects alongside financial investment.
The loan is secured by a first-ranking charge over the borrower’s assets.
