Berkeley Assets, the international private equity firm with offices in Europe, the Middle East and Latin America, says its latest investment into assisted living opens up significant opportunities into a fast-growing UK sector.
The company has placed equity finance for the construction of up to 70 apartments on the site of a centuries old mill at Atherstone, North Warwickshire in a government-approved social housing project.
Government support for the project, which is being undertaken by developer Atherstone Britannia, will guarantee a buyer on completion and ensure there are people ready to occupy the new apartments.
“Assisted living in the UK is massively underserved and there is a growing demand from people across the country who prefer this option to sheltered housing or nursing homes,” said Mike Clark, Partner at Berkeley Assets.
“Our partnership with Atherstone Britannia delivers us a healthy share of capital appreciation, and there is a strong and consistent long term growth outlook.”
Omar Jackson, Partner at Berkeley Assets added: “The project is expected to generate an annualised return of 33% upon completion, and we look forward to using this deal as a template to gain more exposure to the assisted living market in the UK over the coming months and years.”
The development of the Britannia Works Mill, a listed building, revives the story of how the market town of Atherstone thrived as the centre of the UK’s hat-making industry in the 17th century. This continued until the mill, the town’s last factory, closed in 1999.
Assisted living, also known as ‘extra care’ offers people the chance to live independently in a secure environment while having access to extra care whenever they need it.
The Atherstone Britannia project has planning for up to 70 units consisting of 35 one-bedroom and 35 two-bedroom apartments, all of which offer assisted living with no restrictions.
“Final planning is expected within eight weeks and project completion is set within 21 months,” said Jackson. “Warwickshire has the ideal demographic for assisted living with an ageing population and a growing demand for extra care.”
Berkeley Assets’ UK office recently received the official stamp of approval from the Financial Conduct Authority (FCA), one of the largest and most respected financial regulators in the world, as an approved representative.
The company is currently undergoing a global expansion, having recently opened new offices in Marbella and Mexico City while others in Africa and the Far East are set to follow throughout 2019 and 2020.