Fortwell provides €62m loan for new Leeds retirement village

The loan will be used to fund the construction of Scarcroft Park, a 128-unit retirement village in the affluent area of Scarcroft, which sits six miles northeast of Leeds.

Scarcroft Park, which will be operated by Audley Group, comprises 22 cottages and 106 two-bedroom apartments, and is the fourth project undertaken by the JV, which was formed in 2019 to develop retirement villages with over 500 units in total, representing a total value of £400 mln.

The Scarcroft Park site was purchased, with full planning consent, by the JV in Q2 2021, with construction set to commence this month.

With the deal Fortwell Capital has provided its first dedicated retirement village loan as it looks to increase and expand the scope of its lending within the wider senior living sector.

Nick White, associate director, Fortwell Capital, commented: ‘We are excited to expand our focus within the senior living sector to also include retirement villages, following a number of years when care home development in the UK was at the heart of Fortwell’s lending strategy. We firmly believe these types of high quality retirement village schemes are essential in the UK and will continue to require significant funding from alternative lenders to meet the required level of development. Audley Group and ReLF are both exciting outfits and we’re looking forward to working closely with the respective teams to realise their brilliant vision in Scarcroft.’

Gary Burton, CFO Audley Group, commented: ‘The demand for retirement village living has only increased over the last two years, and we are delighted to work with Fortwell Capital to begin development of the fourth project within our joint venture, bringing the Audley Group stable of properties to 14 completed and open villages, with a further five under construction. This new finance facility reflects the increasing interest and strong growth in the sector.’