News & Insights

News & Insights

Senior Living – The Asset Class for the Future


Speed Read
  • The immediate development opportunities in the senior living sector are clear, with policy initiatives, delivery targets, and an ageing population indicating a prosperous future 
  • Recent estimates forecast an annual increase of c.190,000 of UK residents aged over 65, increasing the relevance of senior living 
  • Retirement Communities offer a great combination of various income streams alongside capital growth opportunities, compared to other traditional asset classes 
  • Senior living appears resilient to the impact of Covid 19 and has not diminished investor appetite, with attractive yields still apparent 
  • Recent research by Knight Frank detailed a £1.40bn investment in the UK for housing with care in 2021 – an increase on the previous year – and a further £1.85bn has been committed for investments in the sector in 2022 

Senior living has been a recurring discussion for a long time and while it may seem as though it is progressing more slowly than it should, the appetite from the investment community combined with the positive market dynamics will inevitably lead to it becoming one of the most critical asset classes globally from a socio-economic standpoint.


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Zenzic Capital announces £1m mezzanine development facility to Antler Homes


Zenzic Capital announces £1m mezzanine development facility to Antler Homes PLC for acquisition and development of residential land in West Sussex.  

Zenzic Capital is delighted to announce the completion of a £1m mezzanine development facility to Antler Homes PLC (“Antler”) for the acquisition and development of residential land in Slinfold, West Sussex. Completion took place on the 17th of May 2022. The scheme will provide 24 units (16 private and 8 affordable units,) which will deliver a GDV of £12.5m.

Antler’s Managing Director, Andrew Rinaldi, said: “We continue to value our relationship with Zenzic Capital, whose resourcefulness and solution-driven approach match our business model and future growth plans. Our thanks to Zenzic’s team.”

Special recognition goes to:

  • Toby Burgess of Paragon Bank;
  • Jordan Alexander and Bob Branscombe of Zenzic; and
  • Our legal representatives at Freeths LLP.

 

About Zenzic Capital:
Zenzic Capital is a principal real-estate lender focused on providing innovative financial solutions to high growth real estate groups and developers.  

 


This is our second collaboration with Antler and third with the Senior Lender, fulfilling our long-term strategy of recurring partnerships. Antler is a highly experienced developer with an excellent track record of delivery, and we wish them every success with the project.”

Zenzic Capital’s Investment Director, Theo Theodosiadis

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Zenzic Capital is pleased to welcome Katia Pourgalis as Chief Operating Officer in our London headquarters.


Zenzic Capital is pleased to welcome Katia Pourgalis as Chief Operating Officer in our London headquarters.

 

Katia has over 17 years’ financial services experience, spanning real estate, fund management and investment banking. Prior to joining Zenzic, Katia spent 6 years at Alpha Real Capital where she was Director of Operations. Katia also worked in Corporate Finance and Corporate Development at Strategy Capital, Rothschild & Co and Nomura Holdings, having started her career at GE Capital. Katia holds an MBA from London Business School.

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Zenzic Capital announces 75% LTGDV senior development facility


Zenzic Capital is pleased to announce the closing of a 75% LTGDV senior development facility to an experienced Midlands-based property developer for the acquisition and conversion of a Grade II listed asset on York’s Coney Street on the 1st of April 2022.

The planned Practical Completion date is March 2023, and the project will generate 8 holiday-let units with a GDV of £2.1 million.

Special recognition goes to:

  • Saam Lowni of Merryoaks for introducing and advising on the deal;
  • Jordan Alexander and Bob Branscombe from the Zenzic Capital team; and
  • Our legal representatives at Freeths LLP

“This is an excellent deal to add to our growing senior whole loan development finance book. The holiday-let market offers enormous prospects for developers and investors, particularly in areas like York’s city centre. We are excited to collaborate with the sponsor, who is a highly motivated developer with a proven track record of success.”
Investment Director at Zenzic, Theo Theodosiadis
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Thought Leadership: The Rise of the Inheritance Economy

“Unsurprisingly, housing growth has far outpaced inflation and earnings growth over the same period, whilst at the same time pushing further out of reach home ownership for younger generations.”
Written by Daryl Thorpe, Partner at Zenzic Capital for Intelligent Partnership’s 2022 Q1 Update:

The UK economy’s prosperity after WWII, with well-paid jobs, substantial pensions, entrepreneurial prospects, and property ownership for many, has resulted in the wealthiest older generation in history. The over 50s own more than 70% of household wealth. This wealth has grown steadily over the last 25 years, despite economic downturns, with household net worth rising from £2.8 trillion in 1995 to £11.2 trillion in 2020, a four-fold rise.

 

Unsurprisingly, housing growth has far outpaced inflation and earnings growth over the same period, whilst at the same time pushing further out of reach home ownership for younger generations. The average age of first-time buyers has increased from 26 in 1997 to 33 today, spawning the so-called “Generation Rent”. In turn, increasing rents further limit the ability of younger households to save, making it even more difficult for them to climb onto the housing ladder.

When you couple this with a challenging economic and political landscape, with the financial repercussions of COVID to be felt for decades, global political instability, and the threat of East vs West lingering, financial achievement for many of the younger generation lays with the prospect of a greater inheritance. It is predicted that over the next 30 years £5.5 trillion will pass between generations.

 

This is the “Inheritance Economy”.
In essence it is an extension of the “Bank of Mum and Dad” which has become the largest ‘lender’ in the UK, particularly to
first-time home buyers. Gifting from the older generation during their lifetime is a large part of intergenerational wealth transfers, providing a helping hand to younger family members while also being a cornerstone of estate tax planning – gifts fall outside of a deceased estate for the purposes of calculating IHT if made at least 7 years prior to death.

 

So, what are the challenges for financial advisers?
An ageing population, which holds the majority of the UK’s wealth, is set to lead to a rising number of deaths in the coming years. The associated pay-out and reduction of funds under management through large IHT liabilities, and the beneficiaries’ requirement for cash, plainly has the potential to dramatically reduce an adviser’s funds under management, as well as their client base numbers.

However, increasing availability of professional estate planning advice, incorporating the whole family and beneficiaries to enable closer alignment of goals across generations, with a larger probability of generational client retention, offer opportunities to address this.

In addition, seeking to reduce IHT liabilities will help the preservation of a higher estate transfer value. This can be accomplished by using a combination of gifting and tax-efficient investment products, many of which give not just lifetime income but also liquidity and access if needed, as well as the advantage of IHT relief.

The Inheritance Economy is here to stay, and we must all adapt if the financial services industry is to continue managing wealth through the generations.

Link to Original Publication
https://view.ceros.com/intelligent-partnership/br-april-2022/p/1?aff=Zenzic&src=APR22BR

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Zenzic Capital provides senior bridge facility to Crosslane for PBSA development in Nottingham.


Zenzic Capital (“Zenzic”) is pleased to announce it has provided a senior bridge facility to Crosslane Student Developments UK Limited for the acquisition of a Purpose-Built-Student-Accommodation (“PBSA”) site in Nottingham.

The scheme, due to complete in the summer of 2023, will offer a student accommodation with 210 bedrooms.
Wellbeing and amenity spaces will also be created, including a landscaped courtyard, gym, games lounge and cinema room.

The Crosslane Property Group has a successful track record, having developed over 30 high-quality PBSA assets across 22 UK cities representing 7,128 beds.

 


“We have worked closely with Crosslane to assist with their funding needs and look forward to a successful delivery of the project. Crosslane is a highly experienced developer with a great track record of delivery.”
Investment Director at Zenzic, Theo Theodosiadis
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