Audley forms jv to back four new retirement villages

Luxury retirement housing provider Audley Group has teamed up with the real estate arm of Schroders and Octopus Real Estate, to fund the development of four retirement villages. The joint venture covers the Audley Villages sites at Cobham in Surrey, Sunningdale Park in Berkshire, Scarcroft in West Yorkshire and Stanbridge Earls in Hampshire. These represent a total GDV of circa £400m, providing a total of over 500 units. Schroders and Octopus, which are teaming up on an investment for the first time, will provide the majority of equity for the developments alongside Audley. Audley, which has 20 villages in its portfolio, will be responsible for the operational delivery of the villages and long-term ownership. Nick Sanderson, founder and chief executive of Audley Group, said: “We have extensive experience of both developing and operating retirement villages, working with multiple partners across the UK.  “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.” Kevin Beirne, director of retirement at Octopus Real Estate, said: “It is fitting that our first investment alongside Schroders is with the retirement communities sector leader. I believe the new communities we are helping to create will set a standard that will really stimulate this market.” Patrick Bone, fund manager at Schroders, said: “This opportunity is underpinned by very favourable structural and demographic trends, which are expected to drive strong real estate returns over the next decade.   “We believe this strategy will also deliver a positive social impact, through the improvement in the wellbeing of residents and the much-needed recycling of larger homes back on to the UK residential market.” Knight Frank advised Schroders and Octopus, while Audley Group instructed Rothschild. To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette