Madison, New Jersey-based PGIM Real Estate has entered into a joint venture with Elevation, a specialist healthcare real estate investment management firm headquartered in London.
The venture will fund developer-operators of new build care homes across the UK and source and structure investments with operators. Elevation will provide ongoing asset and development management services.
PGIM Real Estate is the real estate investment and financing business of PGIM, the $1.5 trillion global investment management business of Prudential Financial. The venture has committed to its first investment with the development of two new purpose-built care homes in Exeter and Didcot, in partnership with London-based operator Care Concern Group. The new homes are expected to be completed and open by late summer 2021 and 2022 respectively.
Charles Crowe, head of UK transactions at PGIM Real Estate said: “During this challenging time, the importance of high-quality senior housing has never been more apparent. As the market recognises the demographic trends that are driving demand for senior housing, we are seeing compelling investment opportunities in this sector. PGIM Real Estate’s long-standing track record of investing in senior housing in the US and UK, showcases our deep expertise and understanding of this sector and we are excited to launch this UK venture.”
Andrea Auteri, managing partner with Elevation, added: “The structure of this joint venture aligns operators alongside an experienced group of investors with a strong track record in healthcare. This innovative investment partnering product allows operators to incubate freehold developments on their balance sheet whilst reducing their equity requirements, enabling efficient scaling of multiple developments at once. We are delighted to be working with PGIM Real Estate and supporting the next phase of growth for Care Concern Group.”
Manpreet Johal, owner and chief executive of Care Concern Group, commented: “This relationship now means that we can execute our pipeline of developments with a clear and efficient framework allowing us to proceed at a greater pace. We aspire to develop 60 homes over the next three-to-five years adding circa 4,700 beds to our portfolio, this partnership will play a significant role in our growth.”
Date published: March 23, 2021