Retirement village provider Audley Group and investor BlackRock Real Assets have formed a joint venture with a total gross development value of £500 mln (€580 mln), marking the latter's entry into the retirement living sector in the UK.
The multi-site JV comprises at least three mid-market villages within the Audley Group’s Mayfield portfolio.
Thomas Mueller, BlackRock portfolio manager said: 'This joint venture with Audley Group is another milestone for the BlackRock Real Assets platform.
'Retirement living is a sector that we had identified early on as offering strong long-term fundamentals in which attractive risk-adjusted returns are achievable. We believe Audley Group has the management experience and scale to deliver.'
The first village in the JV, Audley Group’s Mayfield site at Watford, will create 255 mid-market retirement living properties with extensive health, wellbeing, care and leisure facilities. The project reports strong pre-sales and will be ready for occupation in the summer of 2022.
Audley will manage the development and the operational running of the village, including the sales and marketing of all the properties.
Nick Sanderson CEO Audley Group commented: 'Partnering with a leading global investment team is a major endorsement of our model and the potential for value creation in social and financial terms that exists within the sector.
'An ageing population coupled with a pandemic has made people question their living choices and means they are rightly demanding access to active communities, greater security and a place where they can thrive in rude health within their own homes for as long as possible.
'And as this demand continues, we look forward to continuing in partnership with BlackRock Real Assets to fund appropriate retirement living accommodation solutions for the UK market. Our shared focus on the long-term health of our customers, social impact and sustainability, will be central to our ongoing activity.'
Audley and Mayfield villages enable owners to live an independent lifestyle in their own homes with flexible care, wellbeing services and support when needed. These services are accessible to property owners as well as neighbouring communities.
Facilities at the villages include a swimming pool, health and wellbeing studio, restaurant, bars and bistro as well as care services. Care is provided by Audley Group’s CQC registered provider.
Rothschild and Co advised Audley, and JLL advised BlackRock Real Assets on the transaction.
