Nuveen Real Estate has announced its intention to enter the UK affordable housing sector on behalf of the TIAA General Account in a joint venture with Preferred Homes Limited (“PHL”), a for-profit registered provider of affordable housing, backed by Ashbourne Capital Partners (“ACP”), the UK-based real estate asset management company.
The joint venture has identified an attractive pipeline of opportunities across three sites in regions and cities across the UK, drawing on the expertise of local authorities where there is a significant shortage of additional care accommodation. The partnership strategy is focused on the development of affordable retirement residences and will integrate each scheme within its local area, providing opportunities for local businesses and an improved supply of amenities to local residents.
While truly affordable, the programs are accessible and sustainable, allowing residents to live their lives next to each other, respecting privacy but embracing community. The sites will contribute to the regeneration of town centers and residential areas across the UK and provide a direct solution to the epidemic of loneliness among the elderly population. The platform will also help reduce the financial burden on local authorities to provide care services to their residents by easing fiscal pressures at the local level and freeing up funds for other initiatives.
With an excellent track record in the commercial and residential sectors, ACP’s management team formed PHL in April 2020, enabling the joint venture to directly own and manage affordable housing assets. Retirement living is a growing need as the elderly population grows exponentially in the UK and ensuring affordability for those who cannot finance from their own resources is a core tenet of PHL’s business plan.
The sites will be delivered in well-connected locations with good access to public transport, targeting BREEAM “Very Good” as a minimum standard upon completion of development. Bicycle shops will also be integrated into all designs and electric charging stations to be provided in car parks.
Bill Bateman, Managing Director of European Housing Strategies at Nuveen, said: “We have identified an opportunity to be a frontrunner in this emerging sector which offers huge potential for scalability in the UK. With an increasingly aging population and a severe shortage of affordable housing, Nuveen seeks to provide impact-driven, long-term investment strategies that deliver risk-adjusted returns and create social value. We are truly delighted to be partnering with Preferred Homes to build a UK-wide portfolio of sustainable, well-connected community housing to reassure people that their future care needs are being taken care of.