BlackRock Bets on UK Retirement Housing
<span style="font-weight: 400;">BlackRock is making a big bet on the growth of senior housing in the UK. This is the latest sign that institutional investors’ search for stable income is driving them into increasingly niche areas of the real estate market. The world’s largest asset manager is invest
Published -
May 24, 2021 4:09 AM
BlackRock is making a big bet on the growth of senior housing in the UK. This is the latest sign that institutional investors’ search for stable income is driving them into increasingly niche areas of the real estate market. The world’s largest asset manager is investing GBP 100 million through its Real Assets Arm for a 75 percent stake in a joint venture with the Audley Group, a developer of old people’s villages. “We have the advantage of being able to invest in every sector. We’ve targeted offices in the past, but recently we’ve been more active in “beds. We decided to focus on more defensive, income-oriented strategies during the pandemic,” he added. The company deals with purpose-built student accommodation, rental apartments and senior citizens, as well as logistics,” said Thomas Mueller, portfolio manager at BlackRock.. The investment will fund the development of approximately 1,000 homes which the companies estimate will have a total value of approximately £ 500 million when completed. The first location of the joint venture is a 255-house development in Watford. According to Müller, almost 100,000 people aged 65 and over live within a 20-minute drive from the construction site. In the past five years, just over 200 retirement homes have been built on site, he said. Large investors have increased their bets on retirement homes in the UK due to a growing elderly population and limited supply of retirement homes compared to other developed economies such as the US, Australia and New Zealand. Separately, BlackRock Real Assets is funding the purchase of 3,000 condominiums by landlord Heylo Housing, valued at £ 362 million. According to Andrew Géczy, the company’s chief executive, wealth manager Heylo’s interest has helped attract investment from other large companies.
Tags : INTERNATIONAL Real Estate growth Investors UK Supply BlackRock senior housing retirement homes