PGIM Real Estate is acquiring the real estate and operations of UK senior housing developer Signature Senior Lifestyle.
The manager is investing an unspecified amount on behalf of its European value-add strategy in partnership with Elevation Advisors to source, structure and execute the transaction and asset manage the Signature portfolio.
The Signature portfolio consists of 13 senior living communities, comprising 10 operating properties and three consented development projects in and around Greater London. Signature’s established management team will continue to operate the homes with a focus on continuity and brand growth.
In April 2021, PGIM Real Estate entered into a UK joint venture with Signature to develop and operate a portfolio of prime senior housing in and around the Greater London and the South East.
At the time, PGIM Real Estate, which had created a UK senior housing partnership with Elevation Advisors the month prior, said it worked with Elevation in sourcing, structuring and executing the new joint venture with Revera’s subsidiary Signature.
Commenting on the latest deal, Nabil Mabed, senior portfolio manager of European value-add strategy at PGIM Real Estate, said: “This is a landmark deal for the UK senior living sector and a hugely attractive growth opportunity for us, which strengthens our European value-add portfolio.
“Working with Elevation, we are confident we can add value to Signature on behalf of our investors. Being one of the largest real estate investors globally, we are seeing real estate markets stabilise, and we maintain our conviction in the UK following the reset in valuations over the last two years.”
Simon Webster, partner at Elevation, said: “We are delighted to extend our relationship with Signature, who are recognised as one of the premier senior living brands in the UK, and are looking forward to growing the brand. Plans are underway to start construction on three new developments in the Greater London area later this year.
“We are also excited to expand our partnership with PGIM Real Estate and draw from their wealth of institutional and sector expertise to grow the Signature footprint.”
Kay Cox, CEO of Signature, said: “PGIM Real Estate and Elevation have a proven track record of supporting operators in the senior living sector.
“This investment is a natural next step in our lifecycle, together with the expertise to help us achieve our ambitions and enhance our brand as a market-leading senior living provider.”
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