UK retirement housing provider Audley Group has teamed up with Schroder Real Estate and Octopus Real Estate to develop four retirement villages worth £400m (€439.8m).

The companies have formed a joint venture to develop more than 500 units in total at the Audley Villages sites at Cobham in Surrey, Sunningdale Park in Berkshire, Scarcroft in West Yorkshire and Stanbridge Earls in Hampshire.

Schroders and Octopus will provide the majority of equity for the developments alongside Audley.

Audley, which owns a portfolio of 20 villages across the country, will be responsible for the operational delivery of the villages and long-term ownership.

Nick Sanderson, founder and CEO, 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 retirement, Octopus Real Estate, said: “We’re delighted to be working alongside Audley in this strategic partnership to create the much-needed retirement community real estate for the older population.

“It is fitting that our first investment alongside Schroders is with the retirement communities sector leader.”

Patrick Bone, fund manager, 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.”