Global real estate advisor CBRE has advised Birchgrove, a London based developer and operator of purpose built rental assisted living communities, on the sale of two of its communities in Sidcup and Woking to funds managed by global asset manager M&G.

The properties which are designed to high standards to enable residents to maintain independence with a strong community focus, will continue to be managed by Birchgrove.

The deal is M&G’s first in the UK senior living sector and represents the first phase of a partnership that could deliver more than £200m of purpose-built communities over the next five years.

The transaction of the first two assets, is the first purpose-built portfolio of retirement housing to be acquired by a UK institutional investor.  Made on behalf of the £1.2 billion M&G UK Residential Property Fund, the transaction highlights the growing and pent-up demand for demographic led real estate amongst institutional buyers in operational real estate.

Mark Elliott, Chairman of Birchgrove, said/; “We are delighted to have concluded this partnership with M&G initially involving the sale of our first two developments.  We are pleased to have worked closely with CBRE who were instrumental in bringing the two parties together. This transaction fully justifies our belief in the rental assisted living sector and will help accelerate our growth.”

Philip Schmid Senior Director in the CBRE Senior Housing team said “We are delighted to conclude this transaction with Birchgrove which reflects the quality of the proposition the team have developed.  This represents a true watershed moment for the whole senior housing market with the entry of a global fund manager in M&G. The opportunity in the market, given the lack of housing options for older people, is unprecedented and we expect this landmark transaction to drive further investment leading to new communities and greater choice for older people and we look forward to the ongoing success for both parties.”

Birchgrove were advised by Freeths (Legal) and CBRE.