UK: Brigid Investments has received a £50 million loan from OakNorth Bank to support the company’s new acquisitions and partnership with McCarthy Stone.
Brigid Investments is a special purpose vehicle that was created by Macquarie Capital, an Australian multinational investment banking company, and John Laing.
The funds received by the special purpose vehicle through the loan will be used to acquire about 250 new rental retirement properties. These properties span across the UK and are currently being occupied. The properties are operated by McCarthy Stone, a developer and manager of retirement living communities.
CEO of Brigid Investments, Richard Williams, said: “We are delighted to be partnering with McCarthy Stone, the UK’s leading developer and manager of retirement communities, and creating a platform for growth. Retirement living is a market with high barriers to entry and strong fundamentals, underpinned by an ageing population and constrained supply. John Laing and Macquarie Capital are both leading investors in developing infrastructure, with significant prior experience of investing in specialised accommodation and broader social infrastructure. We were delighted to work with Damien and the team at OakNorth Bank whose understanding of the retirement living sector was impressive. They structured a flexible and attractive facility that will have a significant impact on our future growth ambitions.”
These units are split into two categories: retirement living and retirement living PLUS. Retirement living units are meant for people 60 and above and include communal lounges and promote companionship. Retirement living PLUS units are designed for those who are age 70 and above and include more facilities than retirement living units. These additional facilities include restaurants, support packages, and on-site care.
Along with the initial 250 units, the loan will allow Brigid Investments to continue to grow in partnership with McCarthy Stone, with whom they have agreed to finance 400 more units in the next year.
Senior director of property finance at OakNorth Bank, Damien Hughes, said: “Richard has over 20 years of real estate, property and later living experience, following his roles as Regional Managing Director with McCarthy Stone and as Chief Executive of Rangeford Retirement Living & Care. It is this level of experience, coupled with a talented team around him and the fact that we expect demand to be high for rental units, given the added optionality they offer, that will be vital factors in this project’s success. With the UK retirement living market significantly undersupplied compared to other developed countries, and the demand supply imbalance expected to deepen in the medium term, it’s vital that lenders support projects of this type in the short, medium and long-term.
