Lloyds Bank has recently closed the syndication of GBP50m of its Quercus credit facility to BAWAG P.S.K. as it enters the UK healthcare market.
BAWAG P.S.K. is an Austrian bank headquartered in Vienna with a real estate lending platform dedicated to sourcing opportunities throughout Western Europe.
The bank can provide both senior and mezzanine financing and has a focus on value-add opportunities.
Aviva Investors and Quintain's Quercus Healthcare Property Partnership, the largest UK institutional care home property fund, extended its credit facility with Lloyds Bank last year to 2017.
Lloyds Bank is the facility agent.
Ben Stirling, managing director - European direct real estate alternatives at Aviva Investors, says: "I am delighted that BAWAG has joined Lloyds in the Quercus facility. It reflects the growing market confidence we are experiencing in the care home sector after some difficult years and underpins our investors' decision to extend the Quercus fund term out to 2018."
John Feeney, managing director and global head of corporate real estate at Lloyds Bank, says: "We are delighted to welcome BAWAG into the Quercus facility. Liquidity and demand for the healthcare sector continues to improve in line with the underlying fundamentals and the management team at Quercus has worked hard to face into the headwinds experienced in recent years. The syndication to BAWAG reflects Lloyds Bank's ongoing focus on an originate-to-distribute strategy."
Toby Sharp, director - international real estate and special situations at BAWAG P.S.K. says: "We are very pleased to partner alongside Lloyds in this transaction and to work with such a high calibre and experienced sponsor. Although we have funded into the care home sector in Germany, this is our first healthcare deal in the UK which has helped us further diversify our growing loan portfolio."