Audley Group has received a £40 million loan to accelerate the construction of 255 retirement homes in Watford.
The cash injection from Homes England, the government’s housing agency, comes from the £4.5bn home building fund.
The properties will be constructed at the first of Audley Group’s Mayfield Villages, a new mid-market proposition.
Owners of the new homes are set to benefit from access to support from CQC registered provider Mayfield Care, as well as health, wellbeing and leisure facilities.
Harry Swales, chief investments officer at Homes England, said: “This loan represents our commitment to supporting the creation of homes for a diverse range of communities and shows our determination to intervene in the market to provide funding which has otherwise become unavailable because of the impacts of Covid-19 on the industry.
“The joint venture is positive news for the retirement living sector and we look forward to seeing older people in the area enjoying high-quality, independent living accommodation for years to come.”
The project is due to be ready in the summer next year.
Nick Sanderson, CEO, Audley Group said: “The transaction with Homes England is an important milestone for the retirement living sector. A coming of age. Government backing underlines the importance placed on increasing provision in the retirement living sector and developing more innovative housing solutions. “Our aspiration to transform retirement is shared with both Homes England and BlackRock Real Assets and this will be the focus as we look to the future.”