Oaktree Capital Management-backed development lender Silbury Finance has provided UK retirement village provider Audley Group, with a £59m investment facility, secured against four retirement villages located across Greater London and the Midlands.
The two-year, 75% LTV facility refinances an existing loan and will support Audley as it progresses with the sale of the final 118 homes across the four villages, which are located in Chalfont Dene, in Buckinghamshire, Cooper’s Hill, in Surrey, Ellerslie, in Worcestershire and St George’s Place, Birmingham.
Gavin Eustace, founding partner at Silbury Finance, said: “The structural trends underpinning the UK retirement living investment case are highly compelling, namely a rapidly growing population of over-65s and the significant shortfall of suitable accommodation. We also view it as highly defensive versus other real estate sub-sectors in the current high inflation environment, given the wealth preservation characteristics of its end-user.
“The pool of lenders with the track record, expertise and funding certainty to consistently underwrite larger loans in the space is small. Despite current market volatility our deal pipeline is strong, which should enable us, in partnership with best-in-class sponsors, to maintain our loan book growth.”
Gary Burton, CFO of Audley Group, added: “We’re very pleased to be further strengthening our relationship with Silbury Finance. This facility is a progressive step forward for Audley, increasing leverage for a smaller security pool, and for the integrated retirement sector more generally. Our sector is chronically underserved and prime for expansion, driven by an ageing population, increasing demand and growing investment levels.”
