Following planning permission granted in August 2024, Elysian, together with its joint venture (JV) partner Senior Living Investment Partners (SLIP), a JV between Pension Insurance Corporation plc (PIC), a specialist insurer of defined benefit pension schemes, and specialist real estate lender and investor Octopus Real Estate, will deliver a high-end Senior Living development comprising approximately 100 units. The development will include a wide range of amenities, such as a wellness centre (with a gym, pool, and treatment rooms), a library, restaurant, salon, bar and landscaped gardens.
Over the past decade (2014-2024), the 65+ year old population has risen by 1.73 million people, yet only 74,100 new senior living homes have been delivered. Of these homes, 49% have been in Integrated Retirement Communities (IRCs). This means that only 1% of the 65+ population are living in these schemes, compared with over 5% in more mature markets like the US and Australia.
Looking ahead, the 65+ population is expected to rise by a further 1.27 million people over the next decade. The South East, where this site is located, will see the greatest rise in the elderly population of all UK regions, with a forecasted increase of 20% (194,000 people). To maintain the current 1% penetration rate of IRCs, an additional 68,000 homes will need to be delivered over the next decade, increasing the stock by 75%.
This transaction highlights the continued strength and growth of the Senior Living sector. Operators like Elysian are rapidly expanding to meet the needs of a growing elderly demographic by delivering high-quality housing to help address the critical supply-demand imbalance in the sector.
Paul Spong, Director, Development at Savills, comments: “We are delighted to have advised abrdn on this significant transaction. It is inspiring to see this development opportunity progress, bringing essential housing to the elderly population.”
Haseeb Hassan, Senior Asset Manager at abrdn, comments: “We extend our thanks to Elysian for their collaborative approach throughout this transaction. We wish them every success with their proposed development. Additionally, we would like to express our appreciation to Savills and Hogan Lovells as our legal advisors for their invaluable advice”.
Caryn Donahue, Head of Senior Housing Transactions, Savills, adds: “This sale to Elysian comes at a pivotal time for the sector. As the elderly population grows faster than housing supply, additional accommodation is essential to meet demand.”