Pension Insurance Corporation (PIC) and Octopus Real Estate鈥檚 newly created UK retirement living partnership has made its first investment.
The partnership, known as Senior Living Investment Partners, has teamed up with Elysian Residences to buy a nine-acre site in Hertfordshire to develop a 拢115m (鈧�132m) retirement community in How Wood in St Albans.
The development will be luxury retirement living specialist Elysian鈥檚 sixth integrated retirement community.
Gavin Stein, CEO of Elysian Residences, said: 鈥淪enior Living Investment Partners is further proof of the great potential of this growing alternative residential sector to institutional capital.
鈥漃IC is at the forefront of driving change, embracing new ideas and identifying innovative solutions in the pensions industry, which aligns well with Octopus鈥檚 vision of re-imagining real estate investment by considering purpose and impact as well as profit, along with our own vision to be one of the foremost providers of inspiring and elegant retirement communities in the UK with a focus on putting our customers first.鈥�
Stein said Elysian is 鈥渁ctively looking for new sites and investment opportunities to undertake with PIC and Octopus Real Estate鈥�. Knight Frank acted for Elysian Residences on this deal.
Max Cawthorn, a senior strategy manager at PIC, a specialist insurer of defined benefit pension funds, said: 鈥淲e are delighted to be partnering with Elysian on the How Wood village development, the first investment for Senior Living Investment Partners.
鈥淟ocal St Albans residents will be given the opportunity to purchase the residences off-plan first, and we expect high demand for these high quality and well-located homes, which will be purpose-built to empower our residents to live independently.鈥�
Kevin Beirne, the head of retirement living at Octopus Real Estate, said: 鈥淒eveloping more retirement communities at pace presents a brilliant opportunity for investors, operator partners, those approaching or in retirement, and for the UK and the Government鈥檚 Levelling Up agenda.
鈥淭his first investment via our partnership with PIC has the prospect to deliver both strong returns for our stakeholders and strong impact returns by combatting some of the UK鈥檚 biggest problems, not least the housing crisis and pressures on health services.鈥�
Through the Senior Living Investment Partners joint venture, PIC and Octopus Real Estate expect to provide homes for around 2,000 older residents. The venture expects to deliver a portfolio with a gross development value of around 拢1bn.
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