RM Infrastructure Income PLC on Monday said it plans to invest £11 million in three social infrastructure loans, in line with its rebrand last year.

Back in July last year, RM Infrastructure changed its name from RM Secured Direct Lending to reflect its revised investment strategy focused on ‘critical infrastructure assets at the forefront of providing essential services to society, less correlated to the broader economic cycle’.

On Monday, the lender said it plans to invest up to £6 million in the aged care sector. This will be used to construct a 45-bed purpose-built aged cared home, located in south east England. It is also the company’s first environmental, social and governance sustainability linked loan.

Further, an accommodation loan of up to £2 million will be used to acquire and develop a co-living scheme in central London.

Finally, RM Infrastructure has invested up to £3 million into the childcare sector, where it plans to buy a London-based early years care business.

The loans for aged care and accommodation in central London are for three years, whilst the childcare loan is for five years.

RM Infrastructure added that all three of the loans are secured via all-asset debentures, benefit from limited exposure to interest rate risk, and offer an initial weighted average cash yield of circa 10%.

Co-Portfolio Manager Thomas Le Grix De La Salle said: ‘These investments support under-supplied critical social infrastructure sectors. The investments’ sub-sectors all benefit from strong demographic and structural tailwinds, and each loan’s cash yield provides a real return when compared with reported CPI inflation.’

Shares in RM Infrastructure were up 1.1% to 91.23 pence each in London on Monday around midday.

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