Silbury provides Octopus Real Estate & PIC joint venture with Audley Group with £66 million sustainability linked acquisition & development loan for luxury retirement scheme in Surrey
Silbury Finance, the Oaktree Capital Management-backed development lender, has provided a joint venture vehicle (“JV”) established by Audley Group and Senior Living Investment Partners, the partnership between Pension Insurance Corporation plc (“PIC”) and Octopus Real Estate, a leading specialist real estate lender and investor, with a £66.5 million loan. The 53-month senior facility will fund the acquisition and development of a 112-residence luxury Audley retirement scheme in Surrey.
Known as Headley Court, the 23 acre site is less than two miles from the picturesque commuter town of Leatherhead. The scheme will comprise 12 two-bedroom apartments within a redeveloped Grade II-listed historic mansion house, along with 100 newly constructed apartments and houses.
Due to complete in 2027, the development will have high ESG credentials, with a BREEAM rating of Very Good or above. The site masterplan includes the restoration of the property’s landscaped gardens, which will be open to the public.
Features will include a restaurant, owners’ lounge, inside and outside terrace seating areas, as well as back of house and operational office space housed within the mansion house. Property owners will also benefit from the Audley Club; state-of-the-art wellness facilities including a pool, sauna and steam room, gym, fitness studio and changing rooms.
The transaction is the fifth between Silbury and Octopus Real Estate in the retirement sector, one of Silbury’ s high conviction sectors where demand is being driven by an ageing population. Silbury has now funded £0.75 billion of lending in the UK Living sector since 2021.
Gavin Eustace, CEO of Silbury Finance, commented: “We continue to further our exposure to the nascent but high growth retirement living sector, focusing on sustainable schemes in areas with supportive local demographics, alongside our institutional partners, having now provided Octopus with c. £270 million, and Audley £175 million, of senior finance. Despite the wider market uncertainty, the UK Living sector’s fundamentals remain highly compelling. Our track record and knowledge, coupled with the backing of a global investor with a strong real estate conviction, provides a differentiated platform as we look to accelerate our deployment in 2024, including writing larger ticket loans, whilst remaining highly disciplined in our underwriting.”
Domas Karsokas, Investment Director, Octopus Real Estate, commented: “We are pleased to be moving forward with the development of what will be a fantastic retirement community in a prime location, where we know demand levels are high. Audley, PIC and Silbury all share our core ESG values here at Octopus, and recognise the acute need to develop retirement communities at pace in the UK. The structure and terms of the debt are well suited to a development project and will support returns to our institutional investors.”
Nick Sanderson, founder and Chief Executive at Audley Group, added: “The demand for retirement villages is only growing. Octopus and PIC have recognised the opportunity in the retirement space, and we’re delighted to be progressing this new market-leading integrated retirement community alongside SLIP and Silbury.”
About Silbury Finance
Silbury Finance provides flexible development funding solutions, typically between £10 million to £300 million, across the UK living sector, including Build to Sell, Build to Rent, Student / PBSA and Retirement Living. Founded in 2020 and backed by Oaktree Capital Management, to date it has committed over £750 million of funding and is targeting £1.5 billion of lending by the end of 2024.
About Octopus Real Estate
Octopus Real Estate, part of Octopus Investments, is a leading specialist real estate investor, with over £3.7 billion in real estate assets and secured lending, and a highly experienced team of over 90 professionals.
The property lending team provides bespoke, customer focused financing solutions across the UK residential, commercial and development sectors. The team has lent more than £6.2 billion across over 4,400 loans, providing competitively priced financing throughout the UK and spanning the property investment lifecycle, with loans typically ranging from £100,000 to £100 million+.
The investment team manages over £1.8 billion of investments, with a focus on care homes, retirement communities and affordable housing.
Octopus Real Estate is the trading name of Octopus Investments Ltd (Reg No 03942880), Bridgeco Ltd (Reg No 6629989), Fern Trading Group Ltd (Reg No 6447318), Octopus Commercial Term Ltd (Reg No 13486353), Nino Ltd (Reg No 9015082), Octopus Administrative Services Ltd (03974202), Octopus Healthcare Development Ltd (Reg No 03788979) and ORE Lending Ltd (Reg No 12908588)), all registered in England & Wales at: 33 Holborn, London, EC1N 2HT, and Octopus Real Estate S.ar.l. (Reg No B189290) registered in Luxembourg at: 412F, Route d’Esch, Grand Duchy of Luxembourg, 1471, Luxembourg. Octopus Investments Ltd is authorised and regulated by the Financial Conduct Authority. Issued by Octopus Real Estate. Issued October 2023.