London-based OakNorth Bank has lent £2.3m to Moorlands HealthCare, a residential care home operator part of the newly incorporated My Choice HealthCare Group.

The finance will be used to acquire Harewood Park Care Home in Staffordshire.

Adam Brinn, director of debt finance at OakNorth Bank, said: “The incoming management team for Harewood Park Care Home have more than 30 years of experience working in the industry and running care homes. They are therefore well-equipped to ensure this highly-performing care home continues to receive the support and leadership it needs to meet ongoing demand. 

“As the team lays out plans for further acquisitions this year, we look forward to working with them on additional deals in the months to come,” he added.

The home offers residential and nursing care for young adults, and those between the ages of 18-65 suffering from mental illness, learning disabilities and brain injuries, according to a press release. 

Average occupancy rates have exceeded 90% in the last three years, and due to this demand, Moorland’s Healthcare will refurbish and operationalise three additional rooms at Harewood Park, OakNorth said. 

Craig Sheppard, founder and chairman of Moorlands Healthcare Limited and My Choice Healthcare Limited, said: “With the West Midland’s supply of care home beds lower than any other region in the UK, it is in desperate need of more care facilities.

“It is with this in mind that we are implementing a buy-and-build strategy to provide a larger number of patients with the necessary activities and amenities to fit their rehabilitation and care needs. 

“It was clear from working with the team at OakNorth that this is a sector they understand and that they have done numerous transactions in before,” he added.

OakNorth Bank recently provided a £9.4m loan to Care Concern Group, a UK care home operator for dementia and general nursing.