Audley Group, the UK’s leading provider of retirement villages, has raised nearly £40 million in a sector-first sale and leaseback deal.
A major investor has purchased the freehold of five operational Audley Villages across the UK. These constitute a total of 550 properties in villages from 25 years old to others recently opened.
Audley Group will enter into a 50-year lease on the five sites and will retain operational management of the villages, thereby offering continuity to all owners and team members while providing secure inflation-linked income back to the investors. 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 commented:
“Investors are waking up to the opportunity in the retirement living sector and recognising the robust nature of the underlying income. Innovative funding structures, like the one announced today, showcase the opportunity and flexibility the sector can offer. Owners purchase their properties on a 125 or 250 year lease and, in return for the services and amenities offered, pay both monthly and deferred charges that deliver secure inflation-linked income which allows for highly predictable rent to flow to our new investors. The income protected as it is by the leasehold structures created offers a degree of inflationary income protection few other asset classes can offer.
“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.”
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For more information or spokespeople for Audley Group contact audley@teamspirit.uk.com
