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A record-breaking investment into retirement living

  • United Kingdom
  • Global

    05-08-2021

    Eversheds Sutherland advises L&G on its £500m JV to build over 5,000 new later living homes

    A cross-practice, multi-office team from Eversheds Sutherland has advised Legal & General (L&G) on a £500m joint venture (JV) within the senior living space, to build a portfolio of retirement homes with a gross development value of roughly £4bn, while also scaling up its ambitions to deliver net zero carbon later living communities across the UK.

    The 15-year JV, announced on 3 August 2021, will see the creation of a partnership between NatWest Pension Trustee Limited, the trustee of the £53bn defined benefit pension scheme of NatWest Group, and Inspired Villages, the retirement village operator and developer established by  L&G.

    Eversheds Sutherland’s team advised L&G across all elements of the 50:50 JV, providing corporate, real estate, commercial, tax, construction, banking, employment and pensions advice throughout. The global law firm also supported with a fully remote Docusign closing, which involved over 350 documents being managed and digitally signed.

    The JV sees L&G sell a 50% stake in its first 11 sites to NatWest Pension Trustee Limited, funding the development and operation of a further 5,100 retirement homes across 34 sites in the UK, housing around 8,000 residents and with an estimated gross development value of roughly £4bn.

    This is believed to be the largest investment into the retirement living sector on record for the UK, and the transaction itself is unique as it sees one of the largest UK pension funds investing directly into UK private social infrastructure.

    Theresa-Marie Stodell, corporate Partner, who led the Eversheds Sutherland team on the transaction, commented:

    “Having advised Legal & General when they launched Inspired Villages back in 2017, it’s incredible to see them take their latest steps on an impressive journey, with this joint venture. This transaction signals a huge degree of confidence in both UK real estate and the later-living sub-sector, and by all accounts is record breaking in the volume invested. This project required deep sector expertise and focused commitment from the team across multiple different practice groups, working closely with the L&G and Inspired Villages teams to get it over the line. Congratulations to all involved in delivering this complex transaction.”

    Laura Mason, CEO of Legal & General Capital, said:

    “At Legal & General, we are determined to use society’s capital for society’s benefit. Net zero later living communities, which help to tackle climate change whilst addressing years of underinvestment in our ageing population, do just this. It is fantastic to be partnering with NatWest Group Pension Fund who are aligned in this purpose. This transaction is unique as it sees one of the largest UK pension funds investing directly into UK private social infrastructure. Broadening the range of growth assets that pension money can access is an important step forward for the UK’s growth agenda and economic future, allowing our country’s savings to support the UK in building back better, address climate change and tackle the major issues society is facing. We hope to see further deals like this follow.”

    Eversheds Sutherland advised L&G on the formation and launch of Inspired Villages, in August 2017. Since then the team has worked closely with Inspired Villages across corporate, real estate, construction and commercial matters as that business developed and continued its journey, leading up to the formation of this JV.

    Eversheds Sutherland’s cross-practice team was led by Theresa-Marie Stodell, and included support teams from Corporate: Michael Harris, Principal Associate; Kasam Kiani, Senior Associate; Vanya Ivanova, Associate; Julie Chemla, Associate; and Georgia Hine, Associate; from Commercial: Kelly Holmes, Partner; Matthew Gough, Partner; and Harjot Bhullar, Senior Associate; from Construction: Tom Douglas, Partner; Ed Freeman, Principal Associate; Joanne Naylor, Senior Associate; Lauren Fishburne, Associate; and Samantha Foulds, Associate; from Real Estate: Clare Whitaker, Partner; Cyrille West, Head of Build to Rent, London; Arabella Manning, Principal Associate; and Emma Purton Senior Associate.

    The team also included Henry Bolton, Legal Director, Tax; Chris Brooks, Partner, Banking; Solomon Olukoya, Associate, Banking; Elizabeth Graves, Partner, Employment; Laura Pharez-Zea, Principal Associate, Employment, and Rosamund Wood, Senior Associate, Pensions. 

     

    This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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