New ActivumSG Fund Forms UK Retirement Village Platform with £220 Million of Projects as its First Investment
2nd February 2022
- ActivumSG’s Fund VII invests in developer-operator of retirement villages with highly experienced management team and two shovel-ready developments in place
- ActivumSG to scale up platform to deliver and operate more than 1 billion GDV of retirement villages across the UK
- New developments will provide residents with high quality accommodation and amenity offering, catering for all levels of care dependency
(Jersey) 2nd February, 2022 – A new fund established by ActivumSG Capital Management, the opportunistic real estate fund manager, has made its first investment by establishing a platform to develop and operate retirement villages in the UK with a differentiated offer spanning the full continuum of care.
ActivumSG Real Estate Fund VII formed the platform with the former senior management team of Richmond Villages. It will start construction of its first retirement villages in Birmingham and near Southampton in the second half of this year, for delivery in 2024 with a projected gross development value (GDV) of £220 million. Terms of the acquisition by Fund VII, which ActivumSG established in December 2021, are not being disclosed.
Saul Goldstein, Founder and CEO of ActivumSG, said: “Our pan-European fund has made a flying start with a signature investment that adds a new geography to our residential strategies. We will work closely with the management team to build the business into one of the UK’s largest platforms. We’re no strangers to the opportunities in senior housing, arising from the shortage of purpose-built homes for Europe’s ageing populations. We started in Germany in 2016 with specialist developer Carestone, which is going from strength to strength.”
The new platform’s management team led by Paddy Brice and Paul Jackson has worked together for more than 15 years, primarily during their time at Richmond Villages, where they successfully developed and operated a number of villages. Four years after the group’s sale to Bupa in 2013 the team, backed by a private care home investor, secured the two sites in the ActivumSG fund’s investment, obtained consent to develop them and also established a pipeline of other village projects.
The two village developments in Birmingham’s affluent Edgbaston district and Stoneham Park, near Southampton, comprise a total of 290 independent and assisted living apartments for sale, all benefitting from a centrally integrated leisure, amenity and care hub, offering a further 90 care bedrooms.
The UK is experiencing a chronic supply and demand imbalance for age-appropriate accommodation, which is particularly acute in relation to housing with care.
James de Lusignan, Director at ActivumSG UK Advisors and Head of the UK, said: “We’re backing a first-class management team and are hitting the ground running. The initial two retirement villages will offer something new to the UK, providing high quality homes to a genuinely under-served part of the market. There is a strong pipeline in place and our goal is to grow the platform in the coming years to develop and operate villages with a GDV of more than £1 billion.”
ActivumSG Capital Management Ltd. is a Jersey-based private equity investment manager which focuses on opportunities in European real estate that deliver attractive risk-adjusted returns for investors, raising seven closed-end funds and several co-investment vehicles to date. For the past 15 years its multi-disciplinary teams have looked across the capital structure to identify the optimal entry point to access compelling real estate themes before they become in vogue. Operating from five offices across Europe, ActivumSG’s experienced local teams source opportunities across a wide range of sectors, unlocking real and lasting value through in-house asset management which they crystallize for investors through the most suitable exit. ActivumSG is regulated by the Jersey Financial Services Commission. For more information, visit the website at https://www.activumsg.com
Media contacts for ActivumSG:
Simon Packard, Headlion Consulting +44 7701 089844 email@example.com