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

Turning Point Capital Advisory has arranged a circa £19 million development and bridging facility on behalf of a specialist developer and operator in the Special Education Needs (SEN) sector. The funding, provided by a specialist lender, supports the delivery of three new SEN schools across the South of England and the Midlands.

The facility combines two tranches over a 24-month term. A development finance line funds the construction of one of the schools, while a bridging loan supports the two completed schools ahead of a longer-term refinance. Completing the deal involved six firms of solicitors working across two jurisdictions, reflecting its structural complexity.

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. 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 bridging loan 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. Completing against the backdrop of the white paper published in February only further vindicated the quality of our client, with two sets of valuers and the lender all noting the quality of the operator and the culture across the whole organisation. In a time when deals are harder to fund, the due diligence undertaken by lenders from the outset is huge. a specialist lender 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."

What we finance

Turning Point Capital Advisory is a specialist debt advisory firm focused on operational real estate. We structure development, bridging and structured finance around how operational assets actually perform, across:

• Education and SEN schools and settings

• Care and healthcare

• Living: build-to-rent, student accommodation (PBSA) and co-living

• Hospitality and leisure

We advise on larger operational real estate transactions, typically facilities of more than £15 million, and have arranged over £60 million of funding so far this year. Every mandate receives senior, partner-led attention. If you are planning a transaction in operational real estate, we would be glad to talk it through.

On this transaction, Turning Point Capital Advisory acted as debt advisor to the sponsor and arranged the facility, provided by a specialist lender. The borrower has requested to remain unnamed.