Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
Paragon Funds 71-Bed Care Home Development in Birmingham
Paragon Development Finance has provided funding to MACC Care Properties for the acquisition and development of a 71-bed care home in Birmingham. The new facility will be located on Shaftmoor Lane in Hall Green and is expected to have a mature trading value exceeding £25 million upon completion.
The development will transform a brownfield site into a 44,132 sq ft purpose-built care home. Once completed, it will become MACC Care’s 21st care home.
The transaction was led by Steve Mountain, senior relationship director at Paragon, with support from senior portfolio manager Darren Ellis and portfolio manager Olly Das.
Sector Diversification and Market Context
This funding forms part of Paragon Development Finance’s strategy to expand beyond residential development into sectors such as build-to-rent, later living, purpose-built student accommodation, and care homes. The move comes as property company insolvencies reach decade highs in the UK, prompting lenders to reassess their sector exposure.
Demand for care home capacity is projected to increase as the UK’s population ages. According to ONS data referenced in the report, the number of people aged 65 and over is expected to rise significantly in the coming decades, with the 85-and-above demographic growing at the fastest rate. Independent research cited in the article indicates that approximately 500,000 people currently reside in care homes across the UK.
The Birmingham development adds to the city’s care home infrastructure as providers respond to demographic pressures and increasing care complexity in the UK market.
Source: PropertyWire