Legal & General and NatWest Group Pension Fund have formed a joint venture aimed at scaling up the delivery of net zero carbon later living communities.
The two investors have signed a 15-year joint venture partnership to invest £500 million of equity to create later living communities which will be developed and operated by Inspired Villages, a company that L&G established in 2017 which operates and develops later living communities in suburban and rural locations across the UK.
L&G pointed out that there are now more than 12 million people over 65 years’ old in the UK which is expected to increase by 41% to nearly 18m by 2040. However, there are only 78,000 later living homes in the country and only around 7,000 new units delivered each year.
Inspired Villages offers housing options with prices starting from £230,000 and ranging from 1-bedroom rental apartments to 2/3-bedroom houses for sale.
Two net-zero villages started this year
Inspired Villages broke ground on its first two net-zero carbon developments earlier this year. Located in Bedfordshire and Hampshire, together they are bringing forward over 350 energy efficient home. Millfield Green, The Central Bedfordshire site, will use renewable energy generation including on-site photovoltaics and ground-source heat pumps.
Inspired Villages was established by the Inspired management team and Legal & General Capital, Legal & General Group’s alternative asset platform. Legal & General has sold a 50% stake in Inspired Villages’ first 11 sites to NWPTL based on an enterprise value of over £300 million, allowing it to reinvest equity back into the business and future pipeline.
Inspired Villages currently has six operational villages with 919 residents and four sites under construction. It has a portfolio of 34 sites which will provide around 5,100 homes and support 8,000 residents. The gross development value has been put at £4 billion.