Silbury Finance

Silbury provides £55m for Hertfordshire luxury retirement village



Silbury Finance has completed a £55m development loan to UK Retirement Living Fund (ReLF) for a luxury retirement village in Berkhamsted, Hertfordshire.

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The development is a joint venture between the fund — which is managed by Schroders Capital and advised by Octopus Real Estate — and Elysian Residences.

The 36-month credit facility will finance the acquisition and development of the retirement community, which will feature 103 apartments and hotel-style facilities, including a double-height lobby, restaurant, bar, library, function room, gymnasium and treatment rooms, with homeowners able to access 24-hour care if required.

It will also provide interconnected pavilion buildings designed in a contemporary style, with the living spaces opening onto terraces, landscaped gardens and mature trees.

The development, which is due to open to residents in Q4 2023, represents the joint venture’s first scheme — which was formed in February this year — as it targets a £200m GDV portfolio.

Domas Karsokas, senior investment manager at Octopus Real Estate, said: “Working closely with our joint venture partners and Silbury, we are pleased to be taking the next steps in the development of this market leading UK retirement living development in Berkhamsted. 

“The debt facility marks our second this year with Silbury, whose expertise in the sector complements our own within the joint venture. 

“The pandemic has further demonstrated the benefits of community living and retirement villages, and so we are pleased to proceed with this latest development and go some way to fill the demand for this type of housing and unlock the potential in this sector for our investors.”

Patrick Bone, fund manager at Schroder Real Estate Capital Partners, commented: “The Berkhamsted development, alongside our existing schemes, has created a portfolio of six of the highest quality, and geographically-diverse retirement community schemes across the UK.”

Gavin Stein, chief executive officer at Elysian Residences, added: “We are delighted to be progressing the development in Berkhamsted in partnership with the UK Retirement Living Fund and Silbury Finance, bringing over 100 new apartments to this key demographic, and working with other experienced capital partners within our sector.

“This is our eighth retirement village (at different stages of development) and Elysian Residences is actively looking for new sites and investment opportunities at all stages, as part of our vision to be the foremost provider of inspiring and elegant retirement communities in the UK.”

This is the second loan underwritten by Silbury Finance in the high growth retirement living sector and takes its total lending to £160m since it launched in January 2021.

Gavin Eustace, founding partner of Silbury Finance, said: “Despite the unprecedented and challenging backdrop, we have enjoyed a strong 2021, partnering with a number of high-quality sponsors as we remain on track to meet our year end lending target of £350m. 

“A central thesis behind launching Silbury Finance was that this part of the debt market is critically underserved, which we are seeing first-hand, as evidenced by the £1.2bn of enquiries we have generated since launch. 

“While the UK retirement living sector remains a compelling investment opportunity, the underwriting process can be complex and requires deep sector expertise, which is where we believe we can differentiate ourselves from the peer group.”

“Octopus Real Estate and Elysian have a proven track record of developing and operating successful retirement communities across the UK and we are excited to be supporting them as they look to expand their footprint.”



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