Ashurst advises lenders on loan to Brigid Investments Limited
28 June 2021
28 June 2021
The financing supports a new rental offering product to the senior living market offering retired tenants with increased flexibility and providing an affordable alternative to outright purchase. The loan was made available to acquire approximately 250 purpose-built retirement units to rent and provide for additional funding for a further 400 units in the UK over the next 12 months.
The purpose-built retirement units are developed, let and managed by McCarthy Stone, the UK's leading developer and manager of retirement communities. The investment will enable McCarthy Stone to expand its rental service to a growing ageing population and provide an alternative route to meet the under-supply of this important form of housing. It also provides John Laing and Macquarie Capital with a strong, long-term, inflation linked revenue and the opportunity to develop a scalable platform, given in built options to expand the portfolio.
Building on Ashurst's long history of supporting clients investing into the residential sector, this transaction is indicative of the variety of opportunities the sector now offers to investors in the United Kingdom and across Europe as people continue to change their lives, work and shopping habits with the consequential impact this has on design and demand for amenities and community from student living to retirement and care options.
Jessica Jenner commented: "We are delighted to support our clients on this important and innovative transaction, which illustrates that investors are increasingly viewing the supply and demand dynamics underpinning the residential retirement sector as long term and resilient. Though there are significant differences in market drivers across different real estate sectors, there are key synergies in construction and operations, making a move to the residential sector even more appealing for investors as the real estate market has become comfortable with the operating nature of real estate assets and so can put those lessons to work within the residential senior living sector market."
Ashurst advised the lending group on the key structuring, commercial and legal aspects of the transaction with a team co-led by real estate finance partners Ruth Harris and Jessica Jenner, supported by senior associate Sarah Winter. Partner Henry Moss advised on the real estate aspects and partner Tim Gummer advised on tax.