Silbury Finance provides £40m loan for retirement village

UK Retirement Living Fund Tunbridge Wells

Silbury Finance, a development lender backed by Oaktree Capital Management, has provided the UK Retirement Living Fund (ReLF) with a £39.3 million senior loan to fund the development of a retirement village in Royal Tunbridge Wells, Kent, due to open in 2024.

The village comprises 89 high-quality for-sale homes for retirees and is the second project to be developed by the joint venture formed in February between ReLF and retirement living company Elysian Residences.

Developed and operated by Elysian Residences, the retirement village will include a mix of one-, two- and three-bed and hotel-style facilities, including a restaurant, bar, library, gym, sauna and treatment rooms, with access to 24-hour care if required.

The joint venture is targeting a £200 million gross development value portfolio. Silbury also partnered with the joint venture on its first scheme in Berkhamsted which is due to open to residents in the fourth quarter of 2023, providing a £55 million acquisition and development loan.

ReLF is managed by Schroders Capital and advised by Octopus Real Estate.

Domas Karsokas, investment director at Octopus Real Estate, said: “We are pleased to be moving forward with the development of this market leading retirement community alongside our joint venture partners and Silbury. Both businesses recognise the need for this kind of housing and share some of our core values. This is reflected in the commitment to developing high-quality projects whilst focusing on achieving high environmental standards.”

Gavin Eustace, founding partner of Silbury Finance, commented: “This transaction increases our exposure to both the high-growth retirement living sector and a highly reputable sponsor, and keeps us firmly on track to meet our first-year lending target of £350 million. At the same time and reflecting that the built environment needs to address carbon emissions at the design and construction stage, not just operationally, the innovatively structured facility offers an incentive to the borrower on exit if it meets certain criteria.”

Patrick Bone, fund manager at Schroder Real Estate Capital Partners said: “This deal forms part of a portfolio of six of the highest-quality and geographically diverse retirement community programs across the UK. The need for specialist retirement housing to support the older population in the UK is becoming increasingly pressing and we remain committed to developing first-rate retirement communities with a focus on achieving the highest environmental standards.”

Gavin Stein, chief executive, Elysian Residences, added: “This is our nineth 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.”

Date published: November 22, 2021

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