LBB places £1.16m in LDI premiums for major UK care home portfolio acquisition
Protecting developments today. Powering the communities of tomorrow.
Project Overview
Investor: Major international healthcare real estate investor
Location: UK-wide portfolio
Development: Care home developments
Total Sum Insured: £92.7 million
LBB Consultant: Matt Percival
LBB was proud to support a major international healthcare real estate investor in the acquisition of a group of care home developments across the UK. The firm successfully placed a consolidated latent defects insurance (LDI) programme totalling £1.16m in premiums to facilitate the transaction.
The buyer, a leading healthcare real estate investment trust (REIT), required comprehensive LDI coverage due to the scale of the investment, the properties’ development stage, and its internal risk management requirements. The project involved assets at varying stages of construction and required a robust, institutionally aligned insurance solution to provide long-term protection and purchaser comfort.
The scheme posed a significant challenge as it included a mix of non-started, part-complete, and completed risks. While LDI is standard practice for UK residential funding, its use in commercial developments is often driven by specific purchaser or lender requirements. In this instance, a formal legal undertaking was required, with LBB working closely alongside legal advisers on both sides of the deal.
Principal Consultant Matt Percival handled the complex transaction by packaging all enquiries together. This strategic approach helped to secure favourable rates and terms across the portfolio, with individual cover levels structured across the owning entities. Beyond the initial placement, LBB will continue to provide ongoing technical support and risk oversight throughout the construction lifecycle until all properties reach practical completion.
The case was led by LBB Principal Consultant Matt Percival, whose expertise in multi-site transactions proved pivotal. By leveraging LBB’s market position, Matt was able to deliver a consistent solution that improved the asset protection for the institutional investor.
“It shows the importance of LDI and challenges how it’s often approached in the market. Developers should be thinking about it far earlier as part of protecting the asset, improving saleability, and making schemes more attractive for institutional investment or refinancing.”
Through clear advice and smart packaging of risks, LBB delivered an exceptional result: securing a comprehensive insurance programme that provided certainty for a large-scale institutional acquisition.
This case study is intended for professional clients and does not constitute personal advice or a financial promotion to retail customers.
The London Belgravia Group Provides Risk and Insurance Advisory Solutions to Global Property Developers. London Belgravia Brokers Ltd, t/a LBB, is an appointed representative of Ten Insurance Services Ltd t/a Eleven Network, which is authorised and regulated by the Financial Conduct Authority
