PGIM Real Estate has launched a joint venture with Elevation, a healthcare real estate investment management firm, to invest in the UK senior housing market.
The venture will fund developer-operators of new build care homes across the UK.
PGIM Real Estate is partnering with Elevation in sourcing and structuring investments with operators. Elevation will provide ongoing asset and development management services.
The venture has committed to its first investment with the development of two new purpose built state of the art care homes in Exeter and Didcot, in partnership withCare Concern Group, one of the industry’s most highly-regarded operators.
The new homes in Exeter and Didcot are expected to be completed and open by late summer 2021 and 2022 respectively.
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“We are very pleased to announce our investment into senior housing with Elevation. During this challenging time, the importance of high-quality senior housing has never been more apparent. As the market recognizes the demographic trends that are driving demand for senior housing, we are seeing compelling investment opportunities in this sector. PGIM Real Estate’s long standing track record of investing in senior housing in the US and UK, showcases our deep expertise and understanding of this sector and we are
excited to launch this UK venture,” said Charles Crowe, Head of UK Transactions at PGIM Real Estate.
“The structure of this joint venture aligns operators alongside an experienced group of investors with a strong track record in healthcare. This innovative investment partnering product allows operators to incubate freehold developments on their balance sheet whilst reducing their equity requirements, enabling efficient scaling of multiple developments at once. We are delighted to be working with PGIM Real Estate and supporting the next phase of growth for Care Concern Group, one of the most highly respected senior living integrated developer-operators in the UK market,” said Andrea Auteri, Managing Partner with Elevation.
