Retirement living developer PegasusLife has bought housebuilder Renaissance Retirement, doubling its development portfolio to 71 sites.
The deal will make PegasusLife the third-largest retirement developer in the UK, with a combined GDV of more than £1.7bn.
Turnover is predicted to be £500m by 2021 with more than 2,500 residents across over 166 developments.
Howard Phillips, chief executive of PegasusLife, said: “We set out on a mission in 2013 to transform the retirement property market with a high-quality product and a transparent operating model.
“Adding Renaissance, a leading brand with similar values, to the group allows us to further enhance our product offer, geographical reach as well as offer an even wider range of price points.”
The combined company has 19 sites under construction, and the acquisition also includes an interest in construction company Hackwood, set up by Chris Goddard, current chairman of Rennaisance.
Goddard will join the PegasusLife board.
PegasusLife was formed in 2013 and intends to IPO in two to three years. It has £300m backing from US private equity house Oaktree Capital Management and a £450m debt facility provided by AIG.
It said Renaissance has a strong pipeline of projects and planning record but is under-capitalised and, as a result, the deal will allow its pipeline to be built out far faster.
The acquisition will increase PegasusLife’s product offer, geographical reach and the range of prices on offer.
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