Investors pile into retirement villages producing “robust income”

Investors pile into retirement villages producing “robust income”


Todays other news
The current controls come to an end on March 31...
The agency is also seeking other partnerships in Portugal...
The investment was supposed to be for a city centre...
The first one is in Manchester - but will the...
Grainger is selling its low-yield stock and pinning its hope...

Audley Group, a provider of retirement villages across the UK, has raised nearly £40m in a sector-first sale and leaseback deal. 

A major investor has purchased the freehold of five operational Audley Villages across the UK. These constitute a total of 550 properties in villages from 25 years old to others recently opened.

Audley Group will enter into a 50-year lease on the five sites and will retain operational management of the villages, thereby offering continuity to all owners and team members while providing secure inflation-linked income back to the investors. At the end of the 50 years, Audley Group will purchase back the villages for £1. 

Nick Sanderson, founder and chief executive of Audley Group, says: “Investors are waking up to the opportunity in the retirement living sector and recognising the robust nature of the underlying income. Innovative funding structures, like the one announced today, showcase the opportunity and flexibility the sector can offer. 

“Owners purchase their properties on a 125 or 250 year lease and, in return for the services and amenities offered, pay both monthly and deferred charges that deliver secure inflation-linked income which allows for highly predictable rent to flow to our new investors. The income protected as it is by the leasehold structures created offers a degree of inflationary income protection few other asset classes can offer.

“The attention on the sector is growing as its ability to alleviate challenges in both the housing and care sectors as our population continues to age become more widely acknowledged.  Increasing supply is critical to help a greater number of people live long and healthy lives, while aligning with increasing institutional appetite. We look forward to continuing to realise this ambition with forward thinking investors that understand the importance of funding solutions that will in turn unlock future development.” 

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Property Investor Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
The rental property brings in some £7,000 a year...
The sale of these properties fell through last month -...
A firm of solicitors has put forward an analysis of...
It's happening in March at an event in Swansea...
Spain’s draconian new tax is already spooking British investors...
The Budget has forced a revision of forecasts for the...
Prices and sales volumes will grow in 2025 despite the...
Recommended for you
Latest Features
The current controls come to an end on March 31...
The agency is also seeking other partnerships in Portugal...
The investment was supposed to be for a city centre...
Sponsored Content
As the property industry shifts towards sustainable practices, Inspired Property...
Are you concerned about rising interest rates and their potential...
In the ever-evolving landscape of property investment, staying ahead of...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here