Moorfield Audley Real Estate Fund Raises Additional £85 Million
Moorfield Group, together with the Audley management team led by founder Nick Sanderson, created MAREF to acquire the business in December 2015.
Audley is ramping up for a period of significant and sustained growth. This latest fund raising round creates a total war chest of over £700m to be invested over the next five years, drawn from a combination of equity, development income and investment debt.
To date the fund has attracted institutional investors from the US and continental Europe and this new funding will support the acquisition and development of new Audley Villages in key locations as well as sites for its new mid-market proposition, Mayfield Villages. Investors have been attracted to Audley's vision of creating a best-in-class product, differentiated from its competitors not least by its innovative business model. Audley both develop and operate the villages to ensure quality and value is maintained in the long term.
As well as the 15 villages that sit under the Audley Villages brand, which when completed will provide at least 2,000 units nationwide, 500 units are currently planned at future Mayfield Village sites.
Marc Gilbard, Moorfield Group CEO, said: "Over the nine years we have worked with Audley we have seen that a strong management team, premium design and ambitious growth plans have led to the business becoming a significant success story. We decided to raise the additional capital from our present investors in the Fund and we are very pleased to have reached our target.
"The new capital will give Audley the opportunity to acquire new sites, develop existing sites and allow the expansion of the business.
Nick Sanderson, Audley CEO said: "This latest round of fundraising further underlines what we at Audley and Moorfield have known for some time; retirement living in the UK is a growth market, principally as a result of the significant shortage of retirement housing and growing demand which is now vastly outstripping supply. Market penetration is less than 1 % in the UK, compared with 17% in the USA, and 13% in Australia and New Zealand.
"This new investment will allow us to explore new sites for both the Audley and Mayfield brands, delivering the products and services that our customers demand. We are a profitable business with a robust balance sheet. Our vision is to continue transforming the market by providing choice and high quality housing, and investment such as this will allow us to maintain our heritage of innovation and realise this vision."
Responding to customer demand, Audley last year launched Mayfield Villages, a mid-market proposition for which the first location will be announced shortly. The premise behind Mayfield is to offer the same level of service as Audley Villages, with high living standards and excellent care, but at a lower price point. These will be larger villages, typically in urban/suburban environments.