Later living specialist Pegasus, part of the Lifestory Group, has announced a substantial shift towards becoming the UK’s leading Build to Rent (BtR) developer and operator in the later living sector.
The company has already developed 2,500 homes across 50 locations around the UK, valued at over £1.5bn.
Following the successful securing of a significant investment loan facility with Barclays to support its growth as a wholly rental-oriented developer and operator, Pegasus has a pipeline of six new development sites across the country. These sites are set to create over 300 new homes for the over 60s community, with construction starting in early 2024.
Steve Bangs, Pegasus’ CEO, explains the move: “Our decision to become the market-leading Build to Rent developer and operator for seniors comes as a direct result of our customers selecting rental as their preferred option when choosing a Pegasus home.”
Recent analysis shows that individuals aged 55-64 years and those aged 65 years and older are the fastest-growing segments of the private rented sector, increasing by 118% and 93% respectively since the turn of the last decade. Knight Frank’s research reveals that the number of private rental properties for seniors is expected to increase by a staggering 166% over the next five years in the UK, from nearly 5,000 currently to over 13,000.
Pegasus’ move towards BtR for seniors comes as the company already has a strong track record in the rental market. At its Latheram House community in Cheltenham, 83% of current occupants are renters.
Steve Bangs adds, “These are rental customers who have chosen to live in a thriving location, with the flexibility that independent living brings with it, by removing the burdens that may have come with their former homes in terms of management and maintenance.”
As Pegasus transitions to become the market-leading Build to Rent developer and operator in the seniors market, the company will continue to offer both home purchase and renting options across all 26 existing communities before becoming exclusively Build to Rent.
Lifestory has engaged Savills to source a strategic investment partner to help fund future rental-only schemes and become the pre-eminent developer and operator of mid-market seniors rental in the UK.
