Leeds-based LNT Group this week announces significant development funding for its new care home operation Ideal Care Homes, which is set to radically shake up the care sector with its ‘no-top ups’ policy.

The considerable package, which comes from three global banks, will see a development fund of £67m supporting the newly formed subsidiary, whilst also propelling the rest of the group’s businesses forward in 2010. The funding package comes from long-term group financier The Royal Bank of Scotland, Israeli Bank Leumi and Yorkshire Bank and offers the strongest signals yet that confidence from lenders has returned.

Ideal Care Homes is the brainchild of Yorkshire entrepreneur Lawrence Tomlinson, who founded parent company the LNT Group in 1990. Tomlinson has a twenty-five year history in the care sector and has created Ideal Care Homes with the aim of delivering the highest quality of care for all those that require it, regardless of their financial circumstances. The ‘no third-party top ups’ policy and affordable fees will see hotel-standard accommodation and high quality personalised care offered to all. With substantial growth aspirations, Ideal will operate largely in the North and Midlands, with eleven homes set to open over the next 12 months.

All Ideal Care Homes will be designed, developed and built by sister company LNT Construction which has spent £20m on 30 development sites in the last 2 years and provides around 1000 care beds per annum.  It will now acquire multiple locations for care home development over the coming months, also facilitated by the funding package.

LNT Construction has seen an 80% increase in turnover during the recession due to personal investment by Lawrence Tomlinson and has also featured widely in the Sunday Times Fast Track 100, over the past two years.  Homes are built to the very highest specification with facilities including all en-suite accommodation, shower wet rooms, flat screen televisions, mini fridges, telephone and internet facilities, sensory gardens and in-house cinemas. 

LNT Group Chairman Lawrence Tomlinson, who is also an accomplished racing driver having raced with Nigel Mansell at Silverstone earlier this year said: “This is a significant funding package by anyone’s standards and I’m delighted that the banks involved have seen Ideal Care Homes as a strong business proposition, underpinned by incredible value for money for our residents.  Ideal is a fantastic addition to our portfolio of businesses – it has a unique partnership with LNT Construction and together they offer an entirely holistic approach to the provision of care. The LNT Group has weathered the recession well and I’m confident that 2010 will see us expand to new levels - whilst always ensuring that our main ethos of ‘best proposition to customer’ remains at the heart of everything we do.”

Funding from The Royal Bank of Scotland, which has backed the company since it inception, was provided by Dave Harris, Adrian Rowles and Jason Heywood from the RBS team in Leeds. Commenting on behalf of the RBS team, Adrian Rowles, Director said: “Through changing demographics, the healthcare sector is a growing market and it is presenting shrewd operators with a number of business opportunities. We have worked closely with Lawrence and his team so we understand their business strategy. Creating the subsidiary significantly enhances the company’s offering and its asset base and provides them with the opportunity to take advantage of the openings in the marketplace.”

Acting for, Bank Leumi (UK) was Regional Manager, Steve Cooper covering the North East region. Acknowledging the particular challenges in completing this deal he commented: “It was vital that we worked collaboratively with the client’s existing bankers so that a practical working partnership could be forged between the banks which would support the client’s future growth ambitions.  LNT Group has a great reputation for successful development across the UK and we look forward to supporting them as they continue with their growth strategy.”

Meanwhile Jonathan Ellis, Partner at Yorkshire Bank added: “We are delighted to build upon our partnership with Lawrence and the team at the LNT Group. We have been impressed by the passion Ideal Care Homes has to delivering great service to its customers and very much look forward to playing our part in this proposition.”