Paragon boosts care home presence with funding for 71-bed Birmingham facility

Paragon Development Finance is supporting the acquisition and development of a new 71‑bed care home in Birmingham which is expected to reach a mature trading value of over £25 million.

The funding has been provided to MACC Care Properties to acquire a brownfield site on Shaftmoor Lane in Hall Green, Birmingham, and subsequently develop a 44,132 sq ft purpose‑built care home. The completed scheme will represent the operator’s 21st care home to date.

The deal was led on behalf of Paragon by Steve Mountain, Senior Relationship Director, with support from Senior Portfolio Manager, Darren Ellis, and Portfolio Manager, Olly Das.

The transaction reflects Paragon Development Finance’s continued focus on diversification, as the specialist lender broadens its support beyond its core residential development offering to respond to 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.

Demand for care home provision is expected to continue rising as the UK’s population ages.

According to the ONS, the number of people aged 65 and over is projected to increase significantly over the coming decades, with the population aged over 85 growing at the fastest rate.

Independent research indicates that close to half a million people currently live in care homes across the UK, with further capacity required as longevity increases and care needs become more complex.

Dr Naz Nathani, chief executive of MACC Care Group, said: “We are delighted to have worked with Paragon Development Finance on their latest transaction in the care home sector.

“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.

“We valued the collaborative approach taken by Steve and the wider team in structuring a bespoke, sector-aligned funding solution that recognised the specific requirements of specialist care assets.

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.”

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 is a key focus for Paragon as we respond to sectors that are increasingly critical to the UK’s long‑term housing and care needs.”

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.”

Paragon Development Finance works with hundreds of SME developers and operators nationwide and has financed the delivery of more than 13,000 new homes since 2018.

The launch of its care home offering forms part of a broader strategy to support assets that play a critical role in meeting the needs of a changing population.

To find out more about Paragon Bank’s Development Finance offering, visit: www.paragonbankinggroup.co.uk/devfin.