Audley Group has announced the completion of over £130million in new financing arrangements from major institutional investors, Pension Insurance Corporation (PIC) and King Street Capital Management.
An initial investment was committed by PIC, an investor in UK living assets and infrastructure. The facility was secured against the long-term operating income generated by nine retirement villages within the Audley Group portfolio, the investment of which is well-suited to match PIC’s purpose to pay the pensions of its current and future policyholders over decades.
This facility includes capacity for further investment as additional villages reach maturity through Audley’s development pipeline, enabling the asset base to grow in line with the long-term income streams.
The second tranche of capital is with King Street Capital Management, a global alternative investment firm, as part of its European Real Estate Strategy. This capital is intended to support the acquisition of long-term income-producing assets within the existing Audley portfolio as they mature.
The significant potential in the UK retirement living sector is recognised by both brands, driven by demographic trends and sustained demand for enhanced lifestyle and care options for an ageing population.
These two new capital raises follow the announcement in July of the merger between Audley Group and Elysian Residences to bring together two market-leading companies, designed to deliver the increased benefits of scale across the sector. The combined gross sales value of the new Group is over £3billion, with over 25 villages operating under three brands, Audley, Elysian and Mayfield.
Gavin Stein, CEO and Founder of Elysian Residences, said: “The scale of our combined business has increased investment appetite still further, showcasing the strength and depth of the integrated retirement community model. It’s a pleasure to work with investors of the calibre and expertise of PIC and King Street Capital Management, both of whom really understand the potential in the sector.”
Nick Sanderson, CEO and Founder of Audley Group, said: “The interest from such significant institutional investors has confirmed both the potential in the retirement village market and the position of Audley and Elysian as the leading players in the sector. For a long time, investment interest was focused on retirement village development, given the ageing population and lack of housing provision. This transaction highlights the demand for long-term, high-quality income.”
Paul Brennan, partner and co-head of real estate at King Street Capital Management, said: “We are pleased to support Audley and Elysian, market leaders in the UK retirement living sector, as they enter their next phase of growth. The retirement living sector benefits from powerful demographic tailwinds and structural undersupply, and we believe this platform is well positioned to deliver sustainable, long-term income at scale.”
