Silbury Finance, an Oaktree Capital Management-backed development lender, has provided a joint venture vehicle established by Audley Group and Senior Living Investment Partners - a partnership between Pension Insurance Corporation and Octopus Real Estate, with a £66.5 mln (€77 mln) loan.
The 53-month senior facility will fund the acquisition and development of a 112-residence luxury Audley retirement scheme in Surrey, UK.
Known as Headley Court, the 23-acre site is less than two miles from the commuter town of Leatherhead. The scheme will comprise 12 two-bedroom apartments within a redeveloped Grade II-listed historic mansion house, along with 100 newly constructed apartments and houses.
Due to complete in 2027, the development will have high ESG credentials, with a BREEAM rating of Very Good or above. The site masterplan includes the restoration of the property’s landscaped gardens, which will be open to the public.
The transaction is the fifth between Silbury and Octopus Real Estate in the retirement sector, one of Silbury’ s high conviction sectors where demand is being driven by an ageing population. Silbury has now funded £0.75 bn of lending in the UK Living sector since 2021.
Gavin Eustace, CEO of Silbury Finance, commented: 'We continue to further our exposure to the nascent but high growth retirement living sector, focusing on sustainable schemes in areas with supportive local demographics, alongside our institutional partners, having now provided Octopus with £270 mln, and Audley £175 mln, of senior finance. Despite the wider market uncertainty, the UK Living sector’s fundamentals remain highly compelling.'
