PGIM Real Estate is investing in the UK senior housing through a newly created partnership with healthcare property investment management firm Elevation.

PGIM Real Estate, on behalf of an investment strategy, said the venture has committed to its first investment with the development of two care homes in Exeter and Didcot, in partnership with care home operator Care Concern. The new homes in Exeter and Didcot are expected to be completed and open by late summer 2021 and 2022 respectively.

Charles Crowe, head of UK transactions at PGIM Real Estate, said: “We are very pleased to announce our investment into senior housing with Elevation. During this challenging time, the importance of high-quality senior housing has never been more apparent.

“As the market recognises the demographic trends that are driving demand for senior housing, we are seeing compelling investment opportunities in this sector.

“PGIM Real Estate’s long-standing track record of investing in senior housing in the US and UK showcases our deep expertise and understanding of this sector and we are excited to launch this UK venture.”

The newly created PGIM Real Estate and Elevation venture will fund developer-operators of new build care homes across the UK. PGIM Real Estate is partnering with Elevation in sourcing and structuring investments with operators. Elevation will provide ongoing asset and development management services.

Andrea Auteri, managing partner with Elevation, said: “The structure of this joint venture aligns operators alongside an experienced group of investors with a strong track record in healthcare.

”This innovative investment partnering product allows operators to incubate freehold developments on their balance sheet whilst reducing their equity requirements, enabling efficient scaling of multiple developments at once.”

Manpreet Johal, owner and CEO of Care Concern, said: “We look forward to our new venture with PGIM Real Estate and Elevation, this relationship now means that we can execute our pipeline of developments with a clear and efficient framework allowing us to proceed at a greater pace.

“We aspire to develop 60 homes over the next 3-5 years adding circa 4,700 beds to our portfolio, this partnership will play a significant role in our growth.”

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