23 November 2023

Audley Group, specialist retirement living provider, today announces the completion of a first-of-its-kind, five-year, £28.5 million financing facility, provided by Federated Hermes, a global investment manager. The loan facility will focus on six fully developed and sold-out villages within Audley Group’s portfolio.

The villages represent a range of maturities, from fifteen-year-old Audley Clevedon to Audley Redwood, which has been open for five years. The financing facility utilises operating surpluses, meaning the more cash flow the villages generate, the more that can be advanced.

This unique financing facility is the first of its kind in the retirement living sector, where funding has to date focused on development and stock financing. This facility is therefore significant for both Audley Group and the Integrated Retirement Community (IRC) sector. It completes the financing landscape by providing a financing option for any stage of a village. Therefore, funds being raised from securitising sold out maturing and mature villages enables further investment into additional new villages, which accelerates the development of much needed units for a growing older population.

Gary Burton, COO & CFO, Audley Group, said: “Our well-established track record as long-term operators of Integrated Retirement Communities means that we are constantly striving to invest in both our current villages while also securing and developing our next sites. A holistic approach to the way IRCs secure financing is necessary if we are to succeed in our goal of increasing the provision of units for the UK’s aging population. Our focus is to finance mature and maturing villages (and their secure and upward inflating incomes) to invest into new villages to bring more units to market.

“I’m therefore delighted that Federated Hermes shared our vision and agreed to this first of a kind financing facility. The demand for retirement villages is continuing to grow and the UK’s aging population means that the need for supply to start matching demand is ever-more urgent.”

Vincent Nobel, Head of Asset Based Lending, Federated Hermes, said: “Our continuous effort to find strong assets managed by the best sponsors has resulted in the collaboration with Audley Group. We have structured a bespoke financing solution for some of the more established villages that Audley manages across the country. We have been consistently impressed with the high-quality of the product Audley offers, and look forward to working together with the team at Audley over the coming years.”

This financing agreement follows the announcement in August 2023 that Audley Group and Senior Living Investment Partners (SLIP) agreed to acquire 100% of the long leasehold interest in a plot within the Brent Cross Town (BXT) masterplan on which to develop a new retirement village as part of Audley Group’s Mayfield Villages. SLIP is a £200m partnership between Pension Insurance Corporation and Octopus Real Estate.

About Federated Hermes
Federated Hermes, Inc. is a global leader in active, responsible investment management, with $715.2 billion in assets under management as of Sept. 30, 2023. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed income, alternative/private markets, multi-asset and liquidity management strategies to more than 10,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide.