Audley Group, a provider of luxury retirement villages, has formed a joint venture with the Royal London Pension Property Fund to deliver a new development in Buckinghamshire.
Audley Wycliffe Park will become the 21st village in Audley Group’s portfolio, with a GDV of £80 million.
The JV agreement is Royal London’s first investment into the retirement living sector and covers a 25-acre site at Horsleys Green, between Stokenchurch and High Wycombe. The village will provide a total of 156 high quality retirement living properties and luxury facilities.
Royal London will provide the capital for the development and retain freehold ownership when all properties are sold.
Audley Group, owned by the Moorfield Audley Real Estate Fund, will then enter a 250 year lease, taking on the operational running of the village, including the sales and marketing of all the properties.
Throughout the development phase Audley will support Royal London and oversee the design and fit out which they say is is a first for the expanding retirement village sector and
Audley Group has been active in this market for over 20 years, and the 21 villages in its portfolio, when completed, will provide over 2,000 properties nationwide.
Nick Sanderson, founder and chief executive, Audley Group, said the JV approach was an indication of the attractiveness of retirement living to investors.
“We are delighted that such a major new entrant to the market has recognised the stability, security and longevity of this sector. The demand for retirement village living continues to expand and we have no doubt that this is just the start of a fruitful working relationship with Royal London,” he said.
Andrew Johnston, head of alternative property investment, Royal London Asset Management, echoed Sanderson’s analysis.
“The retirement living sector in the UK presents significant investment opportunities. Changing demographics with an ageing society and a significant under supply of modern, purpose-built age appropriate housing points to strong sector growth in the years ahead. Investors have an opportunity to make a real difference and make a positive impact while securing attractive returns,” he said.
Date published: August 27, 2020