Audley Group raises £40m in sale-and-leaseback deal

Retirement village operator Audley Group has raised almost £40m through what it claims is the first sale-and-leaseback deal in the sector. The group has sold the freehold of five operational villages, comprising some 550 homes, to an unnamed “major investor”. Audley Group will enter into a 50-year lease on the five sites and will retain management of the villages. At the end of the 50 years, Audley Group will purchase back the villages for £1. Nick Sanderson, founder and chief executive of Audley Group, said: “Investors are waking up to the opportunity in the retirement living sector and recognising the robust nature of the underlying income.” He added: “The attention on the sector is growing as its ability to alleviate challenges in both the housing and care sectors, as our population continues to age, become more widely acknowledged. “Increasing supply is critical to help a greater number of people live long and healthy lives, while aligning with increasing institutional appetite. “We look forward to continuing to realise this ambition with forward thinking investors that understand the importance of funding solutions that will, in turn, unlock future development.”