Pension Insurance Corporation (PIC), a specialist insurer of defined benefit pension schemes, will invest up to £200 mln (€230 mln) in equity to fund the development and operation of around 10 new retirement communities across the UK.
The move marks its first investment into the emerging UK retirement living sector.
Senior Living Investment Partners is a joint venture between PIC and specialist real lender Octopus Real Estate.
The retirement communities developed through the joint venture are expected to provide homes for around 2,000 older residents and will include lifestyle and wellness facilities such as restaurants, gyms, spas, pools and resident communal spaces.
Hayley Rees, managing director of PIC Capital, said: 'The UK retirement living sector is a growing market, with huge untapped potential that is increasing by the day as the population ages and the supply of new housing lags behind demand.
'It was vitally important for our entry into this sector that we found a partner that was aligned in our vision to generate considerable social value whilst providing value in the long term for our stakeholders.
'It was clear from our early conversations with the team at Octopus that they were this partner, and we look forward to working together to effect meaningful change in regional communities and society at large.'
The deal marks Octopus Real Estate’s second retirement investment strategy; the first having invested the equity in over £700 mln of retirement communities’ gross development value alongside other developers and operators.
Aiming to deliver £1 bn in gross development value, the joint venture’s primary objective is the development of a portfolio of new, high-quality, retirement communities nationwide against a backdrop of undersupply and increasing demand, driven by a growing ageing population.
It will also deliver additional positive social benefit through local employment creation in both the construction and operation of these communities.
Kevin Beirne, head of retirement living at Octopus Real Estate, said: 'We are to delighted to be working with PIC on this retirement joint venture.
'The launch of the Senior Living Investment Partners joint venture is further proof of the great potential of this rapidly growing alternative residential sector.
'PIC is at the forefront of driving change, embracing new ideas and identifying innovative solutions in the pensions industry, which aligns well with our vision of reimagining real estate investment by considering purpose and impact as well as profit.'
