Simon Loveridge on the State of the Later Living Housing Market

Bisnow’s annual Later Living: Building Vibrant Communities conference took place on 10 November, which was attended by Riverstone, an active participant in industry discussion about growing the sector to meet the evolving housing needs of the over 65s.

Representatives from across the retirement living sector came together to discuss the retirement living market, including key design and tech trends and ways to boost delivery.

Riverstone’s Chief Financial Officer, Simon Loveridge, took to the stage alongside Andrew Ovey, Head of Healthcare at AXA Investments Managers – Real Assets, Matthew Pritchard, Founding Partner at Silbury Finance, and Andrew Johnson, Head of Alternative Investments at Royal London, in a panel moderated by Rachel Orton, Partner at Addleshaw Goddard.

Throughout the session, the speakers discussed the strategies that companies need to consider when entering the retirement living market and what can be learnt from those who are already successfully doing it. Simon took the opportunity to explain the Riverstone rational for focusing on exceptional residences for over 65s in prime central London, after witnessing the success of similar models overseas in locations such as North America, New Zealand and Australia. In the UK, the offering is far less advanced, which means there is currently a significant supply and demand imbalance.

Simon discussed how anyone looking to move into the sector needs to be patient as the asset class is still evolving in the UK. Riverstone has spent five years researching the sector, acquiring sites, and developing its first-class team and will be opening its first residences in Kensington and Fulham next year. Being realistic about the lead time to opening is vital and often means that partnering with an existing operator is critical in getting to market.

Andrew Ovey of AXA Investments Managers – Real Assets added that there is a need to continue educating prospective residents on the concept of retirement living. Many understand the more traditional housebuilder model and what a care home provides, but not everyone knows of the high-quality, luxury offering now available to over 65s.

When asked to share one key piece of advice for an entity looking to enter the market, Simon spoke of the importance of always keeping residents at the heart of everything you do. Their interests and preferences should permeate through all that an operator provides, from the amenities and lifestyle offerings, to the design of apartments and communal spaces, through to the team itself. This was echoed by Andrew Johnson of Royal London who highlighted the need to invest in the sector in a responsible manner and with care. Matthew Pritchard of Silbury Finance added that location is critical. For him, it is important to invest in a site where the local demographic perfectly fits the offering provided by the operator.

Simon ended the discussion by talking about how inclusive the retirement living sector is. Operators, developers, lenders and insurers regularly come together to share ideas and developments for the benefit of future residents and to ensure the right type of properties are available to over 65s as demand continues to grow.
Thanks goes to Bisnow for an insightful and engaging conference.