Retirement Villages makes next acquisition in the southwest
Market leader in the retirement villages’ sector, Retirement Villages Ltd (RV), has acquired its 13th retirement community – The Priory, a village of 43 apartments and cottages in South Devon.
RV has bought the whole of the issued share capital of Clennon Management Ltd, for £540,000. The development has a gross development value of £8.5m.
It follows closely behind RV’s £13m purchase of Avonpark near Bath seven months ago from Care Estates Ltd.
The Priory represents RV’s 13th village and its 6th acquisition in the last six years.
Jon Gooding, chief executive at RV says: “Because there are less than 50 private sector retirement villages operating in the UK, opportunities to acquire high quality existing villages are rare and this fits very well with our existing operations in the South West of England.
“We will be looking for further acquisitions during the course of the year at the same time as driving our own development schedule.”
Additional industry comments on the current concerns surrounding elderly care provision (for use as part of the above or separately):
Jon Gooding, chief executive, continues: “The combination of the banking crisis, government expenditure cuts and a series of scandals in the elderly care sector looks like a perfect storm but in fact it is shaking up the sector and accelerating the necessary change towards a new model for elderly care in this country.
“The traditional residential care home is dead, the traditional retirement housing scheme is dead. The baby boomer retirees want independence, dignity and above all enjoyment and that’s what the retirement villages’ model delivers.
“Residents retain a stake in the equity market through leasehold ownership of their property. At the same time, the model provides continuing care – a progressive range of care facilities as residents grow older and their needs change. And most importantly, a social scene in a community of like-minded individuals that makes life worth living.”
Avonpark Village, a community of 99 independent and supported living studios, apartments and houses as well as 24-hour residential, nursing and dementia care, is a living example of this model – a model increasingly referred to as a Continuing Care Retirement Community (CCRC).
Jon forecasts: “There will be a growth in private CCRCs as Government funding leads to further cutbacks in the adult social care sector. This is a sustainable model and one that more people aged 65 and over are buying into.”
