£75m development funding for Cheshire retirement living group
Congleton-based property company, Adlington Retirement Living, has secured a £75m development facility from NatWest Group and Homes England.
It will be used to accelerate the growth of Adlington’s pipeline of Integrated Retirement Communities across England.
This deal is a landmark for the sector with NatWest providing the senior debt and Homes England the Mezzanine tranche.
It is the first time Homes England has supplied Mezzanine financing to a specialist Integrated Retirement Community developer, demonstrating government recognition of the vitally important role IRCs play.
This new investment supports Adlington’s strategic growth plans and will help to meet the fast growing need for specialist later living accommodation in the UK.
The business is currently set to provide 700 new homes over the next three years, with two more retirement communities due to complete in the next nine months at Wylde Green (Sutton Coldfield) and Newcastle-under-Lyme (Staffordshire), adding to the 17 IRCs already delivered by Adlington Retirement Living.
Further land has been acquired in Timperley, Greater Manchester, Ampthill, Bedfordshire, and Leicester with a pipeline of other opportunities.
Dr Ed Gladman, CEO of Adlington Retirement Living, said: “We welcome the support from NatWest Group and Homes England. This funding represents government backing of both Adlington and the wider sector.
“Our relationship with NatWest spans over 35 years so to be able to evolve our partnership with them on a deal like this is fantastic. Their continued support, along with Homes England’s engagement will facilitate our progress towards addressing the urgent need for suitable housing for our aging population.”
He added: “Integrated Retirement Communities offer the elderly a way to retain their independence for as long as possible, choosing where they want to live with the safety net of care options being readily available if they are needed in the future.
“They also keep older people engaged with wider society which is key to tackling loneliness and isolation in later years. Now with the backing of Homes England and Natwest Group we can support even more older people to enjoy their retirement years to the full.”
Andy Clarke, relationship director, real estate finance of NatWest Group, said: “It remains an exciting time for Adlington as they move forward with a series of projects which we are delighted to be supporting alongside Homes England. Adlington continues to provide fantastic facilities alongside the right social environment for their residents to support their needs.”
Nigel Barclay, director of loan origination at Homes England, said: “We are pleased to have been able to structure this new facility alongside NatWest. This will accelerate the delivery of much needed homes in the sector and support the continued growth of Adlington.”
Adlington Retirement living was advised by Myerson Solicitors, and Addleshaw Goddard, and Eversheds Sutherland acted on behalf of NatWest Group and Homes England, respectively.