AEW UK Real Return Fund invests in funding pipeline for HBV Group supported living developments

HBV Group is pleased to have agreed a deal with AEW Real Return Fund (AEW) to fund a pipeline of our award-winning supported living developments.

AEW has completed the acquisition of a portfolio of five supported living schemes for a combined total of £16.7 million, reflecting its strategy of increasing its weighting towards less cyclical assets that meet demographic and social need.

The investments comprise either the acquisition of newly completed facilities, or the forward funding of pre-let developments, all of which provide bespoke living accommodation designed to meet the needs of individuals with mental or physical disabilities.

All sites are leased to Inclusion Housing, a leading health and social care landlord for vulnerable adults, and local care providers will provide direct care and support in partnership with each Local Authority’s social care teams. Together they provide a total of 88 beds for vulnerable adults and a blended yield of 6% for the Fund’s investors with income linked to annual CPI and a WAULT of 20 years.

AEW has agreed to fund a pipeline of schemes being developed by HBV Group, which specialises in new-build supported living schemes in the UK.

These properties comprise 22 self-contained units in Ipswich, 20 units in Ilkeston and a further 18 in Swadlincote.

The acquisitions increase AEW’s portfolio weighting of assets in the supported living, care, education and NHS key workers to 51.3%, underpinning the fund’s strategy of targeting less cyclical areas of the economy and in sectors focused on meeting demographic and social need.

HBV Group is very pleased to have agreed this funding for a pipeline of our schemes and we are pleased that AEW recognises the opportunity in investing in high quality, new build supported living accommodation in the UK.

If your institution is expanding its investment interests in the UK supported living sector – HBV Group is interested in learning more to see if we can partner together in 2022 to deliver our latest and growing pipeline of sites.

“This is a sector that we have been tracking for some time. There is a chronic shortage of Specialist Supported Housing for young adults, which is only forecast to increase over time and now that the operators are being better regulated we felt the timing was right to increase our exposure to this market with brand new future-proofed schemes which deliver attractive, defensive returns at this stage of the cycle, as well as having the social impact of providing much needed modern accommodation.”

Ian Mason, Portfolio Manager, AEW UK Real Return Fund Tweet

“We are pleased to deliver this pipeline of schemes which will all have a positive social impact on local communities in the UK. As well as supporting the investment strategy of AEW UK Real Return Fund it delivers the high quality, bespoke and modern developments which are in high demand from adult social care commissioners at the Local Authorities we collaborate with across the UK.”

Jonathan Wrigley, Managing Director, HBV Group Tweet

AEW UK Real Return Fund (RRF) is a secure income strategy which seeks to provide contract backed cashflow, inflation protection and capital preservation. The strategy targets a 4% p.a. total real return (net), a 5% p.a. gross portfolio yield and inflation-linked income growth, together with capital preservation, in real terms, by building a portfolio based on the strong property fundamentals of this real asset class. As at 30 June 2021, the RRF has an annualised distribution yield of 4.8%, with 89% of income linked to inflation or fixed increases and a WAULT of 17.4 years to expiry and with over 40% of the portfolio invested in social sectors and a net asset value of £147.4m.

 

HBV Group was established in 2010 and is renowned as one of, if not the leading developer of bespoke new build specialist supported housing in the UK. HBV was one of the first developers to set up in the sector on a national basis to meet the growing need for bespoke accommodation and support of the country’s vulnerable disabled adults.

To date, HBV has completed over 55 schemes within 40 local authority areas across England and Scotland and based on its track record of continually delivering best in class sustainable building enjoys substantial Local Authority and political support, many of the schemes having already been acquired by Local Authority pension schemes.

Working with investment funds in 2022.

Talk to us to discuss investing in our sector.

If you are an institutional funder talk to us about our latest pipeline of specialist supported living developments in the UK.