Case Study · United Kingdom

Property Finance for Retirement Village in Glasgow

9 April 2018

Property Finance for Retirement Village in Glasgow

Rikvin Capital approached by UK-based company to finance a Retirement Living Development in Newton Mearns

A UK company had a dream of building a state-of-the-art retirement village in Glasgow, complete with 252 flats, a clubhouse, and an 80-bed care facility. However, their plans hit a roadblock when they failed to secure a bank loan based on the land alone. The company was left searching for a solution that would help them bring their vision to life.

Enter Rikvin Capital. The management team saw the potential in the property and decided to provide a loan to the company. They understood the importance of having a safe and comfortable retirement for seniors and wanted to be a part of making that happen.

With the loan from Rikvin Capital, the company was able to successfully develop the facility and make their dream a reality. The retirement village became a thriving community for seniors, providing them with a comfortable and safe place to call home. The company was grateful for the support from Rikvin Capital and were proud to have played a part in creating a better life for seniors in Glasgow.

Problem

  • A U.K. company had planned to build 252 flats, a clubhouse, and an 80-bed care facility
  • The company had failed to get a bank loan based on the land alone

Solution

  • Rikvin Capital’s management team saw the potential in the property and was able to provide a loan
  • The loan was concluded upon the successful development of the facility

Related: Read about when Rikvin Capital financed a vacant prime land purchase in Argyle Street for redevelopment

  • Location: Newton Mearns, Scotland
  • Market Value: £11,000,000
  • Loan Amount: £3,300,000
  • Loan-to-Value: 30%
  • Duration of Loan: 11 Months
  • Payment Schedule: Rolled up Interest, paid at the end of term
  • Asset Type: Retirement Village
  • Completion Time: 21 Days

← Back to Case Studies

Get Funding Approval Within 24 Hours

Speak with our specialists about your bridging requirements.

Contact Us

FAQ

Can Rikvin Capital fund a UK retirement village or senior-living development?

Yes. The Glasgow case here lent £3.3 million against an £11 million Newton Mearns development site (30% loan-to-value) for a 252-flat retirement village with clubhouse and 80-bed care facility. Banks were unwilling to lend on the land alone; we lent against the existing site value to get the project off the ground.

How is a senior-living development project financed across its life cycle?

A common path: short-term land-acquisition bridge from us, then development-finance facility once planning is granted, then long-term operator finance once the village is built and occupied. We focus on stage one and bridge to the development-finance facility, which is where high-street lenders are willing to step in.

How long does this kind of land-bridge loan run?

6 to 12 months typically. The Newton Mearns case used 11 months with rolled-up interest paid at the end, which suited a development scheme with no operating cash flow during the planning and pre-construction period.