LBB places £1.16m in LDI premiums for major UK care home portfolio acquisition

23 March 2026

LBB has successfully placed a consolidated latent defects insurance (LDI) programme totalling £1.16m in premiums, supporting the acquisition of a group of care home developments across the UK by a major international healthcare real estate investor.

Principal Consultant Matt Percival handled the complex transaction, which involved assets at varying stages of construction and required a robust, institutionally aligned insurance solution to provide long-term protection and purchaser comfort.

The buyer, a leading healthcare real estate investment trust (REIT), required comprehensive LDI coverage due to the scale of the investment, the development stage of the properties, and its internal risk management requirements. Matt packaged all enquiries together, including a mix of non-started, part-complete and completed risks, helping to secure favourable rates and terms across the portfolio.

The total sum insured for the project was £92.7 million, with individual cover levels structured across the owning entities. While LDI is standard practice for UK residential funding, its use in commercial developments is often driven by specific purchaser or lender requirements. As part of this transaction, a formal legal undertaking was required, with LBB working closely alongside legal advisers on both sides of the deal.

Matt Percival, Principal Consultant at LBB, commented:

“It shows the importance of LDI — and challenges how it’s often approached in the market.

“It’s a product widely used in residential development, but 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.

“In this case, it was initially overlooked, but once a PLC buyer became involved, it quickly became a requirement. By that stage, with works already underway across parts of the portfolio, the cost and complexity had increased.

“It was a pleasure to support on what was a complex, multi-site transaction and help bring a consistent solution together across the portfolio.”

Beyond the initial placement, LBB will continue to provide ongoing technical support throughout the construction lifecycle of each development. The team will remain engaged until all properties reach practical completion to ensure continuity of cover and rigorous risk oversight.

The transaction highlights the growing role of LDI within large-scale commercial and institutional real estate acquisitions, particularly where international investors seek enhanced certainty and long-term asset protection.