LONDON, UK: LMS Capital PLC, a listed investment company, has announced the acquisition of Castle View Retirement Village in Windsor for £11.9 million.
The deal is part of LMS’s strategy to invest in the retirement living sector, which is expected to grow due to the ageing population and the demand for housing options for older people.
Castle View is a purpose-built retirement village that was completed in 2018 and consists of 64 apartments, of which 15 are still available for sale.
The residents have access to various communal facilities and amenities, as well as optional support and care services.
They acquire their apartments on 250-year leases and pay an annual service charge and a deferred fee, which is linked to the resale price.
LMS has acquired the freehold interest in all the units, as well as the leasehold interests in the unsold units, which have an estimated sale value of £8.3 million.
LMS Capital has also taken over the companies that run the village and employ the staff. The acquisition is being financed by a £6.0 million equity investment from LMS and a £5.9 million loan from the existing lenders to the scheme.
LMS Capital will also provide £400,000 of working capital for the business. The loan is secured on the freehold interest and has a term of 3 years.
Robbie Rayne, Chairman of the Board of LMS, said: “Over the last 2 years, LMS has been evaluating opportunities to deploy capital in the retirement living sector as an extension to its property background.
The goal, having now acquired Castle View, is to develop an investment platform in the sector and deliver attractive returns to our shareholders. The sector is currently fragmented with multiple different business models and offers to residents.
It offers the prospects of strong growth and attractive investment returns, underpinned by favourable demographics. I am confident in our team and the long-term prospects for the sector.”
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