Legal & General and NatWest Pension Trustee Limited (NWPTL) have announced a 15-year joint venture to deliver 5,100 zero carbon retirement homes.
The £500 million deal will support Inspired Villages, L&G’s later living business, to create a portfolio of specialist, later-living properties across 34 sites with an estimated Gross Development Value of £4bn.
Robert Waugh, the CEO of NWPTL, which has more than 200,000 members and £53 billion of assets, described the investment potential of the later living sector as “substantial.”
He said “This new partnership with Legal & General and Inspired Villages aligns perfectly with our ambitions to invest in areas that present strong social and environment credentials.”
While more than 12m over 65s live in the UK, a figure expected to increase by 41 per cent by 2040, there are just 78,000 later living homes and only 7,000 new units are delivered each year underscoring the need for greater investment.
Laura Mason, the CEO of L&G, welcomed the partnership which she hopes will address “years of underinvestment” in social infrastructure while tackling climate change. She said: “we are determined to use society’s capital for society’s benefit.”
Jamie Bunce, CEO of Inspired Villages also expressed his delight about the deal which will allow the company to “grow at pace.”
NWPTL has committed to buying all the completed retirement villages outright while Inspired Villages will continue to manage them.