UK: PGIM Real Estate is to acquire the real estate and operations of Signature Senior Lifestyle, in a deal expected to complete by the year end.
The acquisition was made on behalf of PGIM Real Estate’s European value-add strategy, in partnership with Elevation Advisors.
The portfolio of 13 senior living communities consists of 10 operating properties and three consented development projects in and around Greater London.
Signature’s management team will continue to operate the homes, while the companies said they will look for opportunities to improve the environmental sustainability of the operating homes.
“This is a landmark deal for the UK senior living sector and a hugely attractive growth opportunity for us, which strengthens our European value-add portfolio,” said PGIM Real Estate managing director Nabil Mabed.
“Working with Elevation, we are confident we can add value to Signature on behalf of our investors,” he added. “Being one of the largest real estate investors globally, we are seeing real estate markets stabilise, and we maintain our conviction in the UK following the reset in valuations over the last two years,” he added.
Simon Webster, partner at Elevation, added: “We carefully select operating partners who are proven to create best-in-class environments, have an excellent record in care and can evidence a positive impact on their respective local communities. We are delighted to extend our relationship with Signature, who are recognised as one of the premier senior living brands in the UK, and are looking forward to growing the brand. Plans are under way to start construction on three new developments in the Greater London area later this year. We are also excited to expand our partnership with PGIM Real Estate and draw from their wealth of institutional and sector expertise to grow the Signature footprint.”
Kay Cox, chief executive of Signature, said: “PGIM Real Estate and Elevation have a proven track record of supporting operators in the senior living sector. This investment is a natural next step in our life cycle, together with the expertise to help us achieve our ambitions and enhance our brand as a market-leading senior living provider. With our amazing team and best-in-class assets combined with a strong development pipeline, we are well placed for the next stage in our growth.
Construction will start on three new developments in Greater London later this year at Surbiton, Hornchurch and Enfield, all scheduled to open in summer 2025.
In May, PGIM Real Estate acquired a PBSA portfolio from Unite Group, consisting of six properties totalling just fewer than 3,000 beds in Birmingham, Cardiff, Leicester, Liverpool, Nottingham and Sheffield.
