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LaSalle Residential Finance provides £106m loan

LaSalle Investment Management, the global real estate investment manager, has provided a £106m loan facility to finance the development of two retirement villages in the South of England.

The development loan has been extended from the LaSalle Residential Finance programme to a recently formed joint venture between Audley Group, the UK luxury retirement village provider, and the UK Retirement Living Fund.

The facility is secured against two luxury retirement villages to be developed by the joint venture and operated by Audley in Stanbridge Earls in Romsey, Hampshire, and Sunningdale Park in Sunningdale, Berkshire.

Together the two villages will comprise over 250 for-sale residential units for over-65s and high-quality amenities.

The financing of the two developments follows the announcement in August 2019 that Audley Group has formed a joint venture with the UK Retirement Living Fund, managed by Schroders Real Estate and Octopus Real Estate, to develop four sector-leading retirement villages with over 500 units in total, representing a total value of around £400m.

Daniel Pottorff, managing director of debt investments and special situations at LaSalle Investment Management, said: “We are delighted to have provided this financing solution to the joint venture which further strengthens our relationship with the Audley team, having extended a loan from the LRF programme to the Group in 2017 for an urban retirement scheme in Clapham, London.

“This investment exemplifies our strategy of investing in demographically compelling segments of the residential market.”

Jon Austen, chief financial officer at Audley Group, said: “We have a long-established track record of developing and operating retirement villages.

“Our JV structure with the UK Retirement Living Fund, managed by Schroders and Octopus Real Estate, allows us to execute our model in a less capital-intensive way while maintaining our first-class offering which the market continues to demand.

“We are pleased with the extension of this finance arrangement which reflects the strong growth in our sector.”

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