Signature at Hendon Hall

PGIM Real Estate is acquiring the real estate and operations of Signature Senior Lifestyle, a best-in-class owner, developer, and operator of senior housing in the UK, subject to finalisation.

The acquisition was made on behalf of PGIM Real Estate’s European value-add strategy, in partnership with Elevation Advisors LLP, to source, structure, and execute the transaction and asset manage the portfolio.

The transaction is expected to close by the end of June.

PGIM Real Estate is the US$210bn real estate investment business of PGIM and the third-largest real estate firm globally.

Elevation is a specialist investment manager in the European healthcare real estate sector with approximately £2bn of assets under management.

Nabil Mabed, senior portfolio manager of European value-add strategy at PGIM Real Estate, said: “This is a landmark deal for the UK senior living sector and a hugely-attractive growth opportunity for us, which strengthens our European value-add portfolio.

“Working with Elevation, we are confident we can add value to Signature on behalf of our investors.

“Being one of the largest real estate investors globally, we are seeing real estate markets stabilise and we maintain our conviction in the UK following the reset in valuations over the last two years.”

The Signature portfolio consists of 13 senior living communities, comprising 10 operating properties and three consented development projects in and around Greater London.

Signature’s established management team will continue to operate the homes with a focus on continuity and brand growth.

As a priority, Signature will focus on ensuring all assets are future-proofed through the integration of the latest technologies and standards, with the portfolio currently achieving or targeting a BREEAM New Construction rating of ‘Excellent’ or ‘Very Good’.

A strategy to implement identified opportunities to further improve the environmental sustainability of the operating homes has been identified and will be rolled out across the already-high-performing portfolio.

Simon Webster, partner at Elevation, said: “We carefully select operating partners who are proven to create best-in-class environments, have an excellent record in care, and can evidence a positive impact on their respective local communities.

“We are delighted to extend our relationship with Signature, which is recognised as one of the premier senior living brands in the UK, and are looking forward to growing the brand.

“Plans are underway to start construction on three new developments in the Greater London area later this year. We are also excited to expand our partnership with PGIM Real Estate and draw from their wealth of institutional and sector expertise to grow the Signature footprint.”

Kay Cox, chief executive of Signature, added: “PGIM Real Estate and Elevation have a proven track record of supporting operators in the senior living sector.

“This investment is a natural next step in our lifecycle, together with the expertise to help us achieve our ambitions and enhance our brand as a market-leading senior living provider.

“With our amazing team and best-in-class assets combined with a strong development pipeline, we are well placed for the next stage in our growth and we are incredibly excited about what we can achieve together in the years ahead.”