Skip to main content
  • Register
  • Help
  • Contact us
  • Log in to HL Account

John Laing teams up with Macquarie Capital for retirement venture

Thu 08 April 2021 09:24 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - John Laing said on Thursday that it is teaming up with Macquarie Capital and retirement homebuilder MCarthy & Stone to create a UK-based platform to invest in retirement accommodation.

As part of the transaction, Brigid Investments Limited - the platform - in which John Laing and Macquarie Capital are each 50% shareholders, will invest in purpose-built, completed and let retirement living units developed in partnership with McCarthy Stone.

John Laing said the platform has selected and secured a "high quality and geographically diverse" pipeline of units, with around 250 completed units to be acquired on financial completion of the deal. In addition, about 400 further completed and let units will be acquired over the next year.

Together, these represent an investment commitment of about £50m for John Laing.

The platform also benefits from an additional agreement with McCarthy Stone which provides an option to buy follow-on investments in a further 500 units within three years following after completion, which is due in the second quarter.

John Laing chief executive Ben Loomes said: "We are delighted to be partnering with McCarthy Stone, the UK's leading developer and manager of retirement communities, and creating a platform for growth with Macquarie Capital's infrastructure investment team.

"Retirement living is a market with high barriers to entry and strong fundamentals, underpinned by an ageing population and constrained supply.

"This investment is in-line with our strategy of investing in platforms which are asset-backed, scalable and offer long-term, resilient cash flows."

Loomes said there is potential for "significant" value creation both through scaling the platform, and as the sector matures and attracts further institutional capital into core infrastructure assets.

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.

    More company news from ShareCast