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Investment fund agrees £500m deal with senior living shared ownership provider
Private equity investor Meadow Partners has joined up with the Affordable Housing & Healthcare Group (AHH), buying six of its senior living shared ownership schemes.
Meadow has acquired 550 apartments across the South West of England and aims to fund the development of a further 500, in a deal totalling around £500m.
AHH delivers, manages and operates shared ownership homes through its for-profit registered provider, Affordable Housing Communities, which was formed in 2016.
It typically sells 50% of each retirement living home on completion, with homeowners renting the remaining share for amounts that are contracted to grow annually with inflation.
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Andrew McDaniel, founding partner of Meadow, said: “AHH has developed a high-quality, recently constructed product with an attractive ownership model.
“We believe the current and future portfolio will benefit from the demographic trends of the UK’s aging population and growing demand for specialised housing options.”
Tom Scaife, head of seniors housing at Knight Frank, which advised on the deal, added: “The shared ownership model offers an innovative solution for older adults seeking to downsize while maintaining a stake in property ownership.”
Meadow, which has offices in New York and London, also registered a for-profit provider, MP Living, in 2021.
The multibillion-pound real estate investment manager specialises in middle-market transactions. Last year, it bought a 128-apartment residential property in Croydon, including 60 affordable homes that are managed by MP Living.
In July, another for-profit registered provider scaled up its provision of extra-care affordable housing after securing more than £100m from Chicago-based investment manager Nuveen.
In August, Sage Homes, backed by private equity giant Blackstone, sold its 3,000-home portfolio to the UK’s largest private pension fund, the Universities Superannuation Scheme, for £405m.
Another major deal among for-profits was Vistry Group’s £580m build-to-rent agreement with Blackstone and Regis Group.
This latest deal comes as the Housing Ombudsman set out nine key tests for improving fairness in shared ownership complaints.
In its latest report, the sector watchdog set out the learnings for how it will assess shared ownership complaints in future, and highlighted where it can intervene for shared owners, including on issues such as defects and sales process.
The ombudsman’s investigation found errors during selling which lead to residents being unable to afford to purchase, incorrect charges which then come as a surprise after moving in, alongside issues where poor understanding of a lease agreement led to months of delays to vital repairs.
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