Two later-living developers have announced a merger to form the UK’s largest retirement village provider.
Nick Sanderson: “This sector needs scale. It is still very small, given the size of the opportunity” (picture: Audley Group)
Sharelines
Later-living developers Audley Group and Elysian Residences have announced a merger to form the UK’s largest retirement village provider #UKhousingAudley Group and Elysian Residences will merge under a new group company, with external investment from institutional funds.
The new group will have a combined sales value of over £3bn and a total pipeline of more than 30 retirement villages, including those in operation and in the pipeline. This equates to around 3,000 individual properties.
All three existing retirement-village brands will be retained. These include Audley Group’s luxury Audley Villages and mid-market Mayfield Villages, as well as Elysian.
The three brands will sit under a new corporate group led by Gavin Stein as chief executive and Nick Sanderson as chair. Mr Stein will remain chief executive of Elysian Residences and Mr Sanderson will remain chief executive of Audley and Mayfield.
Mr Stein said: “After many years of knowing and respecting Nick, we are delighted that our two companies are coming together and, with our new investors, we will provide a best-in-market retirement-living business of real scale and expertise.
“This is further proof of the great potential in the rapidly growing residential sector, where we will be at the forefront of driving change, embracing new ideas and identifying innovative solutions for our customers and investors.”
Mr Sanderson said: “Investors have recognised the benefits of the long-term secure income stream that retirement villages offer. Now is the right time to capitalise on that interest and bring together aligned brands to create more operating villages.
“This sector needs scale. It is still very small, given the size of the opportunity and the growing older population, and this is a first step to expediting the additional retirement housing units the country so desperately needs.”
Stephen Musgrave, chair of Elysian Residences, said: “The merger of two market leaders in retirement living is a transformational move for the sector and firmly establishes it as an asset class in its own right.
“It is 11 years since Gavin established Elysian Residences, and he and Nick will forge this new market leader for the benefit of all the customers, investors and the outstandingly loyal teams that have been built up over the years.”
In 2024, the pipeline of retirement housing in the UK reached 30,000 homes, falling short of the 50,000 per year needed to meet the demand in the sector.
In 2024, £1.25bn was invested and committed to the retirement housing market, with investment expected to increase in 2025, according to property firm Knight Frank.
Sign up to our new Living newsletter
Picture: Alamy