Meadow Partners has partnered with the Affordable Housing & Healthcare Group (AHH), a UK provider of senior living shared ownership housing, to build up a £500 mln (€600 mln) senior living portfolio in the UK.
Under the terms of the partnership, Meadow has acquired six existing schemes, comprised of 550 apartments located across the Southwest of England, and will seek to fund an initial pipeline of an additional 500 apartments.
AHH operates a vertically integrated platform that originates, delivers, manages, and operates affordable shared ownership communities through its fully owned Registered Provider of Social Housing. AHH’s model typically involves selling 50% of each retirement living unit at practical completion, with homeowners renting the remaining share. This structure creates long-term rental cash flows that are contracted to grow annually with inflation.
J. Andrew McDaniel, founding partner of Meadow, said: 'Meadow has long observed the UK senior living residential market and we are pleased to have identified AHH as our first investment. AHH has developed a high-quality, recently constructed product with an attractive ownership model. We believe the current and future portfolio will benefit from the demographic trends of the UK’s aging population and growing demand for specialized housing options. We look forward to growing the portfolio together.'
Emma Winning, head of Equity at Knight Frank Capital Advisory (KFCA), which facilitated the transaction, said: “We are pleased to have facilitated this substantial investment from Meadow Partners into AHH’s platform. This funding will enable AHH to expand its portfolio and continue providing high-quality shared ownership housing, particularly in the retirement living sector.'
