The 25-acre Audley Wycliffe Park at Horsleys Green — between Stokenchurch and High Wycombe — will become the 21st village in Audley Group’s portfolio, with a GDV of £80m.
The village will provide 156 high quality retirement living properties and luxury facilities.
The JV marks Royal London’s first investment in the retirement living sector.
The fund will provide the capital for the development and will retain freehold ownership when all properties are sold.
Audley Group — which is owned by the Moorfield Audley Real Estate Fund — will then enter a 250-year lease, giving the fund secure, inflation-linked income.
Audley will also take on the operational running of the village, including the sales and marketing of all the properties.
“This new innovative JV structure highlights the breadth of opportunities for investors within the retirement living sector,” said Nick Sanderson, founder and chief executive of Audley Group.
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“We are delighted that such a major new entrant to the market has recognised the stability, security and longevity of this sector.
“Working with Royal London allows us to deliver our first-class offering in a way which is less capital intensive and provides Royal London with a secure, inflationary linked, long-term income stream.
“The retirement living sector has significant investment potential, one which is only set to grow as the government places more attention on fixing the broken social care model by increasing the supply of suitable housing that can provide care and wellbeing services and help preserve independence for as long as possible.”
Throughout the development phase, Audley will support Royal London and oversee the design and fit out of the club facilities.
Andrew Johnston, head of alternative property investment at Royal London Asset Management, added: “We’re delighted to have completed this JV arrangement with Audley Group and look forward to getting on site this quarter with our first project in the retirement living sector, and working together to deliver an outstanding retirement village.
“Having worked closely with the team at Audley Group over the past few months, we’re positive with regard to a strong, future working relationship.”
Andrew explained that the retirement living sector in the UK presented “significant investment opportunities”.
“Changing demographics with an ageing society and a significant under supply of modern, purpose-built, age-appropriate housing points to strong sector growth in the years ahead.
“Addressing this under supply can have far reaching benefits, such as a more efficient housing market, contributing to the fight against climate change, a more efficient use of energy and supporting changes in social care.
“Investors have an opportunity to make a real difference and make a positive impact while securing attractive returns.”
Audley Villages enable owners to live an independent and healthy lifestyle in their own homes, with flexible care, wellbeing services and support when needed.
It has been active in the market for over 20 years, and the 21 villages in its portfolio, when completed, will provide over 2,000 properties nationwide.