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Travers Smith advises McCarthy Stone on agreement to secure £200m total financing for its UK retirement living rental portfolio

Overview

Travers Smith LLP has advised McCarthy Stone, the UK's leading developer and manager of retirement communities, on its agreement to secure approximately £200 million of total financing for the development of its retirement living rental portfolio.

The finance will be provided jointly by John Laing and Macquarie Capital, both of whom are well-known infrastructure investors with a focus on development projects and platforms, including in accommodation and broader social infrastructure. Financial completion of the transaction is expected to take place in the second quarter subject to customary consents.

This investment will enable McCarthy Stone to expand its rental service to a growing ageing population, help meet the under-supply of this important form of housing and provide consumers with another way to access the benefits of retirement living. McCarthy Stone will continue to provide property and estate management and its award-winning care and services provision.

Brigid Investments Limited, a special purpose vehicle formed by John Laing and Macquarie Capital who are both 50 per cent shareholders, will finance approximately 250 purpose-built, completed and let retirement units in the UK, worth approximately £80 million with a commitment to finance around a further 400 units in the UK worth approximately £120 million over the next 12 months.

The Travers Smith team was led by Real Estate Partner, Simon Rutman, and Corporate M&A and ECM Partner, Jon Reddington, with support from Real Estate Associates Aliss Cooke, Emma Sykes and Harriet Large, Corporate Senior Associate Stuart Boath, Tax Senior Counsel Jonathan Woodall and Tax Associate Rob Smith.

Herbert Smith Freehills advised Macquarie. DLA Piper advised John Laing.

Adam Batty, GC, McCarthy Stone commented: “This is a ground-breaking deal that proves the retirement living rental proposition in the UK, creating a platform to fund greater expansion in our rental business. The Travers team has provided fantastic support to us throughout what has been a legally challenging transaction [to structure].”

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