Healthcare development finance
Funding for medical centres, primary-care and clinical schemes.
Funding healthcare development
Healthcare property covers primary-care medical centres, clinics, dental and specialist clinical premises. It is an income-led sector, and where a scheme is let to a strong tenant on a long lease, often backed by the NHS or an established healthcare operator, it offers lenders the kind of secure, long-dated income they value. That covenant strength is the foundation of most fundable healthcare developments.
We arrange finance for purpose-built medical centres, primary-care and clinical schemes, and conversions to healthcare use, structured around the tenant covenant and the lease. A pre-let to a healthcare operator or NHS-backed tenant gives lenders income certainty and supports competitive terms.
Scheme types we fund
- Primary-care medical centres
- Clinics and specialist clinical premises
- Dental and veterinary developments
- Healthcare conversions and extensions
Indicative terms
- Loan to costUp to 65% senior
- Loan to GDVUp to 60%
- Key testsTenant covenant, lease length, demand
- BoostNHS-backed or operator pre-let
Indicative only. Terms vary by lender, scheme and borrower and are not an offer of finance.
How we fund a healthcare scheme
Healthcare development is funded on senior debt against cost and the income-backed completed value, with leverage driven by the strength and length of the tenant lease. A pre-let or agreement for lease to an NHS-backed or established healthcare operator contracts long-dated income and supports competitive leverage and pricing. Without a committed tenant, lenders are cautious, so the lease is the centre of the funding conversation.
Lender appetite for healthcare
Appetite among banks and debt funds is good where a strong, long lease underpins the scheme, particularly NHS-backed or established healthcare operator covenants, because the income is secure and long-dated. Speculative healthcare without a committed tenant is far harder to fund. A pre-let or agreement for lease is what opens a competitive field of lenders.
The exit
The exit is an investment sale of the let building to a healthcare or income investor, or a refinance onto long-term investment debt. Demand for well-let, long-income healthcare assets is steady. Development exit finance can bridge the period between completion and a stabilised investment sale.
Finance structures that suit this sector
- Senior development financeCore facility, leverage driven by the lease.
- Stretch senior financeHigher leverage on long, strong covenants.
- Mezzanine financeBridges the gap on larger schemes.
Fund a healthcare scheme
A view on fundability within one working day.
What drives healthcare scheme value
Healthcare value is income-led and covenant-driven: it rests on the rent a medical or clinical tenant pays on a long lease, often NHS-backed, capitalised at a keen yield reflecting that secure, long-dated income. Lenders model GDV from the contracted rent and treat the strength and length of the lease as the foundation of the appraisal.
Indicative healthcare finance rates and leverage
Senior development finance for healthcare is typically sized to 65 percent of cost and 60 percent of the income-backed value, with leverage driven by the tenant covenant and lease length. An NHS-backed or established-operator pre-let unlocks the keenest terms; speculative schemes are funded more conservatively.
Frequently asked questions
What makes a healthcare scheme fundable?
A strong tenant on a long lease, often NHS-backed or an established healthcare operator. That secure, long-dated income is exactly what lenders value, and it is usually the deciding factor in the terms available.
Can I fund a medical centre without a tenant in place?
It is harder. Healthcare is income-led, so lenders strongly prefer a pre-let or agreement for lease to a credible operator. A speculative scheme is possible in an area of clear clinical need but at lower leverage.
Why do lenders value NHS-backed leases?
Because they provide secure, long-dated income from a strong covenant, which is exactly the risk profile development and investment lenders seek. An NHS-backed lease typically supports the keenest leverage and pricing in the sector.
Does the lease length affect the finance?
Yes. A longer lease to a strong covenant contracts income further into the future, which improves the investment value, the exit and therefore the leverage and pricing a lender will offer.
Funding a healthcare scheme?
Tell us about your development and we will come back with a view on fundability and likely terms.