Audley Group’s business model has been developed and refined over a long period, although the initial concept of providing high-quality property with an independent lifestyle, extensive facilities and flexible care on demand remains unchanged. This is at the core of our offering.
Our Business Model is summarised below. For more detail, please download it here.
The business model and lifecycle of a village falls into three distinct phases:
1. Site acquisition
We spend a substantial amount of time and resource on site identification, narrowing our areas of search to those where we know house prices are at an appropriate level, and the local demographics indicate a sufficient depth of potential purchasers.
2. Construction and sale of units
During the design stage, we typically engage with the small group of national contractors with whom we do repeat business. We vary the type of tender process we follow but always enter into design and build contracts where the majority of the construction risk is laid off to the contractor.
We also start the marketing and selling as soon as construction starts. We aim to exchange contract of sale on 50% of the units in the first phase off-plan. A sales office is opened on the site and the website, site signage, local PR and direct marketing generate enquiries immediately.
3. Operation of completed village
When the construction of the Club and first phase properties has been completed then our operations team takes possession to provide the services our owners require and which we are committed to providing.
All owners are Club members and have the use of our health and wellbeing facilities, classes and spa facilities. This membership also allows our owners to use these facilities and the guest accommodation both at the village where they own a property and at any other Audley Village. We also offer Club membership for a monthly fee to age-qualified non-residents from the local community.
All elements of the village are staffed by Audley personnel, including spa, restaurant and bar staff, a facilities manager, gardeners and a care team all run by a general manager.
Audley funds its operations through a combination of equity, bank debt, recycling of sale proceeds and operational income. We generate sufficient income from the sale of units to meet all the costs of developing a village, such that once a village is complete and fully sold the ongoing capital employed is minimal and yet we will continue to enjoy the management charges for the duration of the leases we have sold.
This business model of generating development returns from selling properties coupled with the guaranteed income arising from the management fees means that the business is also very financially resilient and will continue to generate income even in a housing market downturn. This model has proved attractive to both equity investors and lenders.