Octopus Real Estate, Schroders Real Estate and Elysian Residences form JV to develop luxury retirement villages

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Retirement community

A joint venture between Elysian Residences, a luxury retirement living developer, and the UK Retirement Living Fund (ReLF) which is managed by Schroders Real Estate, and advised by Octopus Real Estate, has been formed to develop retirement communities.

The new retirement communities will provide luxury homes for over 65-year-olds and are expected to generate close to GBP200 million of Gross Development Value. The joint venture has been formed through ReLF, which targets investment in high-quality later-life residential facilities.
The first project of the joint venture has also been announced – a purpose-built village for homeowners aged over 65 years, in Berkhamsted, Hertfordshire, which will provide 103 apartments and a thriving community in which residents can live on their own terms. The new development will be branded as an Elysian Residences scheme and have hotel-style facilities set in landscaped grounds, including a double-height lobby, restaurant, bar, library, function room, gymnasium and treatment rooms, with homeowners able to access 24-hour care and support services if required.
ReLF’s ongoing investment in the retirement sector is designed to help address the undersupply of high-quality retirement housing in the UK, where demand is being driven by a growing ageing population, as well as delivering significant employment creation and easing the pressure on the NHS by facilitating a healthy lifestyle for the older population.
The joint venture follows the recent announcement that ReLF had completed on a development finance facility to fund the development of a retirement community in Cobham, Surrey, operated by Audley Group. The fund’s multi-operator strategy allows institutional investors to access a diverse range of assets through one expert team.
Kevin Beirne, Director, Head of Retirement at Octopus Real Estate, says: “We are delighted to enter into this joint venture for the fund with Elysian Residences who truly bring to life the investment case for one of the largest alternative residential sectors in the UK. As we come through the pandemic, the benefits of community living and retirement villages have been made clear. As a specialist real estate investor, we understand first-hand the scale of the investment opportunity for retirement communities and the important role that institutional investors can play in developing the sector to meet future demand.
“In line with our existing multi-operator strategy, we will continue to work with partners to identify first-rate investment opportunities across the UK which deliver strong diversification benefits and returns to our investors as we invest to unlock the potential of the sector.”
Gavin Stein, Chief Executive Officer at Elysian Residences, says: “Elysian Residences are delighted with the new investment partnership with Octopus Real Estate and Schroders Real Estate and the unveiling of the partnership’s first project in Berkhamsted. This latest development is part of our ongoing expansion plans and Elysian Residences are actively looking for new sites and investment opportunities as part of our vision to be the foremost provider of inspiring and elegant retirement communities in the UK.”

Patrick Bone, Fund Manager at Schroder Real Estate Capital Partners, says: “We are delighted to announce the second joint venture for the UK Retirement Living Fund with Elysian Residences. The pandemic has highlighted the growing need for specialist retirement housing to support the elderly population in the UK and we are committed to developing high quality retirement communities.”
Founded in 2013, Elysian Residences are a specialist investor, developer and operator focused on delivering luxury retirement communities. It manages a GBP700 million (GDV) portfolio of seven retirement villages with multiple institutional investor partners, including two operating projects (the Landsby in London’s Stanmore, opened in February 2020, and Sevenoaks) and a new site scheduled to launch in Hampstead.