A joint venture between Audley Group, Schroders Real Estate and Octopus Real Estate has a € 47 million development finance facility with Silbury Finance.
The loan is Silbury Finance’s first retirement home loan.
In addition to the interests of Octopus Real Estate and Audley, the 26 month loan will fund the development of Audley Fairmile, which will include two bedroom apartments.
The senior village is run by Audley and includes a pool, gym, restaurant and bar-bistro.
Domas Karsokas, Senior Investment Manager at Octopus Real Estate, commented: “The past year has shown that the fixed income sector is an important resilient asset class within the alternative real estate sector.
“Customer sentiment has grown stronger and we are excited to continue with another project that will, to some extent, meet the demand for this type of apartment.”
Gavin Eustace, Founding Partner at Silbury Finance, said, “This is a landmark transaction for Silbury as we have $ 500 million in loans this year.
“UK retirement housing is one of our deeply strong demands because of its emergence and the associated reluctance of more traditional lenders and debt funds to underwrite mid-size development loans for seasoned developers.”
Gary Burton, Audley Group’s CFO added, “The strength of the fixed income sector has never been more evident than it was last year.
“While the pandemic has negatively impacted many real estate asset classes, senior villages have never been in greater demand.
“The further acceleration of our growth means that we can bring urgently needed units to market quickly.”
The JV was formed in August 2019 to develop four retirement villages totaling over 500 units and valued at £ 400 million.
The development in Cobham is the third project of the JV.