Turning Point Capital Advisory arranges £19m facility to deliver new SEN schools

Turning Point Capital Advisory has arranged a £19 million development and stabilisation facility on behalf of a specialist developer and operator in the Special Education Needs (SEN) sector. The funding, provided by Broadwood Capital, supports the delivery and stabilisation of new SEN schools across the South of England and the Midlands, underpinning a turnkey portfolio valued at £42 million.

The facility combines two tranches. A development finance line funds the construction and conversion of new SEN provision, while a stabilisation bridging line supports completed settings through their occupancy ramp ahead of a longer-term refinance.

Demand for specialist SEN places has risen sharply in recent years, with many local authorities facing a shortage of suitable provision. The structure was designed to match that operational reality, funding both the build phase and the period in which a newly opened school establishes occupancy and stabilises its income. The transaction completed against the backdrop of the white paper published in February, which introduced fresh uncertainty across the sector.

Marcus Emadi, CEO of Turning Point Capital Advisory

"Blending development finance with a stabilisation bridge let the sponsor fund both construction and the lease-up phase under a single structure, which is exactly what operational social infrastructure of this kind needs. In a time when deals are harder to fund, the due diligence undertaken by lenders from the outset is huge. Broadwood Capital worked in a controlled and efficient manner to get this deal over the line. With SEN places in short supply, we were glad to help direct capital towards provision that will make a real difference for the children and families who rely on it."

Chen Ikeogu, Banking & Finance Partner, Trowers & Hamlins

"Trowers & Hamlins are delighted to have completed our first transaction for a new entrant to the UK special educational needs school market. We advised the group on their funding arrangements with Broadwood Capital, which enabled the group to release funds to their equity partners and to continue to grow their footprint in the UK SEN school market. This transaction helps the group to realise their ambition of acquiring, opening and operating a number of SEN schools in the UK, the demand for which remains strong. The Trowers team was led by Banking & Finance Partner Chen Ikeogu, with support provided by Banking & Finance Senior Associate Lara Marsden."

Rob Hutchins, Anderson Wilder Harris

"AWH, working alongside Morgan Allen Property Surveyors (MAPS), provided strategic valuation advice to a new entrant to the SEN sector. The instruction required us to advise across the full stakeholder spectrum, operators, investors and lenders, ensuring each party's criteria were satisfied within a single, cohesive piece of work. This marks the beginning of a strategic partnership with ambitions to build a leading group within the SEN sector, and we look forward to supporting that journey as it grows."

Turning Point Capital Advisory acted as debt advisor to the sponsor and arranged the facility. The borrower was advised by Trowers & Hamlins, with Hill Dickinson acting for Broadwood Capital. Valuation was provided by Anderson Wilder Harris in collaboration with Morgan Allen Property Surveyors. Dalbergia acted as quantity surveyor and monitoring surveyor, and insurance was arranged through Lockton. The borrower has requested to remain unnamed.