UK retirement home builder eyes slice of the luxury market

A DEVELOPER of luxury retirement homes is eyeing a slice of the lucrative UK market after teaming up with a big American partner.

The partnership is developing homes with five-star hotel services including a concierge, spa facilities and a private dining room, as well as 24hour medical facilities on site.

Elysian Residences is looking to double the size of its current development programme from around £500m to £1bn in a bid to challenge established players such as Mccarthy & Stone.

Established US player One Eighty, which already has 50 schemes in three countries but is yet to have a presence in the UK, will operate the homes.

Elysian has already quietly started the development of two schemes for older people in Hampstead and Stanmore which are scheduled to open later this year.

The partnership presents new competition to larger UK companies such as Churchill and Mccarthy & Stone, which dominate an otherwise fragmented market.

The pair say they hope to capitalise on the UK’S rapidly ageing population by appealing to so-called “empty nesters”. In 10 years’ time an estimated onein-five people will be over 65.

It is also suggested that building more homes for older people frees up some of an estimated 400,000 family homes in London which are occupied by older people.

Developments will be part-funded by also building some for-sale homes near each site.

Gavin Stein, chief executive of Elysian Residences, said: “At present, when people in the later life age group find that their family home is no longer suitable they are faced with limited options.”

The homes will be in urban areas and will provide care facilities. Residents will be able to part-own their homes, and will be able to defer payment for services in order to give them reassurance on long-term costs.