Retirement village developer Audley and BlackRock Real Assets have joined together to form a multi-site joint venture with a £500m gross development value.
The partnership will fund the development of retirement communities including at least three mid-market villages within the Audley Group’s Mayfield portfolio.
Audley and Mayfield villages enable owners to live an independent and healthy lifestyle in their own homes with care, wellbeing services and support when needed.
Facilities at the villages include a swimming pool, health and wellbeing studio, restaurant, bars and bistro as well as care services. Care is provided by Audley Group’s CQC registered provider.
The first village in the jv, Audley Group’s Mayfield site at Watford, will create 255 mid-market retirement living properties with health, wellbeing, care and leisure facilities.
The project is due to be ready for occupation in the summer of 2022.
“Today’s announcement truly is a landmark event, not just for Audley Group but for the whole retirement living sector in the UK. Partnering with a leading global investment team is a major endorsement of our model and the potential for value creation in social and financial terms that exists within the sector,” said Audley Group chief executive Nick Sanderson.
“We look forward to continuing in partnership with BlackRock Real Assets to fund appropriate retirement living accommodation solutions for the UK market,” he added.
The jv marks BlackRock Real Assets’ first investment into the UK retirement living sector.
“Retirement living is a sector that we had identified early on as offering strong long-term fundamentals in which attractive risk-adjusted returns are achievable. Audley Group has the management experience and scale to deliver,” said BlackRock portfolio manager Thomas Mueller.
“We believe this is an important strategy that provides retirement housing in a structurally undersupplied market,” he added.
Rothschild and Co. advised Audley while JLL advised BlackRock Real Assets on the transaction.
