Pension Insurance Corporation has teamed up with Octopus Real Estate to build a £1bn retirement home portfolio.
The pair have formed Senior Living Investment Partners, through which PIC will invest up to £200m in equity to fund the development and operation of around 10 new retirement communities across the country.
It will be PIC’s first investment into the UK retirement living sector.
Octopus is already a significant investor in retirement living, having invested equity in more than £700m of assets.
Hayley Rees, managing director at PIC Capital, said: “The UK retirement living sector is a growing market, with huge untapped potential that is increasing by the day as the population ages and the supply of new housing lags behind demand. It was vitally important for our entry into this sector that we found a partner that was aligned in our vision to generate considerable social value while providing value in the long term for our stakeholders. It was clear from our early conversations with the team at Octopus that they were this partner, and we look forward to working together to effect meaningful change in regional communities and society at large.”
Kevin Beirne, head of retirement living at Octopus Real Estate, added: “Developing a greater amount of retirement communities at pace presents a brilliant opportunity for investors, operator partners, those approaching or in retirement, and for the UK and the government’s levelling up agenda. In this sector, we work together in the knowledge that we are helping to combat some of the UK’s biggest problems, not least the housing crisis and pressures on health services.
“The launch of the Senior Living Investment Partners joint venture is further proof of the great potential of this rapidly growing alternative residential sector. PIC is at the forefront of driving change, embracing new ideas and identifying innovative solutions in the pensions industry, which aligns well with our vision of reimagining real estate investment by considering purpose and impact as well as profit.”
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