Specialist healthcare investor Octopus Real Estate and Schroders Real Estate have entered into a joint venture with retirement village provider Audley Group, to develop four retirement villages across the UK.
The joint venture will bankroll the 500-unit development of four senior housing complexes with a gross development value of £400m (€440 mln). The projects will be located in Cobham, Surrey; Sunningdale Park, Berkshire; Scarcroft, West Yorkshire; and Stanbridge Earls, Hampshire.
'We have extensive experience of both developing and operating retirement villages, working with multiple partners across the UK,' said Nick Sanderson, founder and chief executive, Audley Group. 'This new JV structure allows us to execute our model in a way which is far less capital intensive, but still delivers the first-class product which the market demands,' he added.
'We’re delighted to be working alongside Audley in this strategic partnership to create the much-needed retirement community real estate for the older population,' said Kevin Beirne, director retirement, Octopus Real Estate.
'It is fitting that our first investment alongside Schroders is with the retirement communities sector leader,' Beirne added. 'As a specialist investor, we understand the opportunities and scale that this market has to offer, and we’re excited to continue to realise this in the future.'
According to the firms, Schroders Real Estate and Octopus Real Estate will provide the majority of funding for the developments alongside Audley Group.
Earlier this month, Audley applied for planning permission for its first carbon neutral development as part of a new phase of properties to be built at Audley Inglewood, Berkshire. This rural scheme will involve carbon offsetting and modular off-site construction techniques.
Audley Group was advised on the joint venture by Rothschild.