M&G Real Estate is taking its 拢1.2bn (鈧�1.43bn) UK residential fund into the senior-living sector for the first time.
The real estate fund manager has acquired two developments through a new long-term partnership with assisted-living operator Birchgrove Holdings.
The partnership is expected to deliver more than 拢200m of purpose-built senior-living communities over the next five years.
Alex Greaves, head of UK and European living at M&G, said: 鈥淪ince its launch in 2013, we have diversified the M&G UK Residential Property Fund鈥檚 investment strategy so we are able to cater for each of the key life stages ranging from student accommodation through to retirement.鈥�
He added: 鈥淭he principle of renting a retirement home instead of owning a property at this key life stage has significant merits.
鈥淚ndividuals can downsize and free up housing stock for the next generation of buyers and rid themselves of the administrative and physical burden of owning a house.
鈥淚t also offers increased flexibility in terms of the different levels of support and provision required to live longer lives in safe, thoughtfully designed communities.鈥�
The two properties, which have 125 apartments between them, are in the South-East towns of Sidcup and Woking, where M&G sees a strong demand for assisted living from those looking to downsize or move out of London.
Birchgrove will continue to manage the properties and future assets acquired by the M&G fund.
The operator was launched in 2017 by Bridges Fund Management, a sustainable and impact investor that also has a property fund management arm.
Honor Barratt, managing director at Birchgrove, said: 鈥淚n Bridges Fund Management Birchgrove has always had a partner who believes wholeheartedly in the value of achieving better outcomes for our residents and for the planet.
鈥淲e鈥檙e delighted to be entering into this long-term partnership with M&G, which will allow us to move forward on an even stronger, more sustainable footing.
鈥淭hat will not only benefit Birchgrove鈥檚 existing residents; it will also enable us to build and operate more beautiful homes and communities for those of us who want to join our quiet rental revolution.鈥�
