Later living specialist, Pegasus, part of the Lifestory Group, announces today that it has made a significant business move toward becoming a sole Build to Rent developer and operator in the later living sector. The move builds on a strong track record of consumer demand, where the company has seen some if its existing communities consist of over 83% of renters.
Pegasus has secured a significant investment loan facility with Barclays, to support its growth as a wholly Build to Rent developer and operator.
The company currently has 26 later living communities that offer rental as a tenure and has a pipeline of six new development sites across the country, which will deliver over 300 new homes available to rent by the over 60s community only. Construction is due to start in early 2024.
“I am very excited to be leading the business through the transition to become the market leading Build to Rent developer and operator in the seniors market. As we prepare for this change, we will continue to offer both home purchase and renting as options across all 26 existing communities available to move into today, before moving to be exclusively Build to Rent.”Steve Bangs, CEO, Pegasus
Pegasus’ CEO is keen to fill the gap in the market for much needed flexible living for the older generation.
The scale of opportunity for the company is clear, as recent analysis shows that those aged 55-64 years, alongside those aged 65 years and older, are the fastest growing segments of the private rented sector, increasing by 118% and 93% respectively since the turn of the last decade.
“Our move to become the market leading Build to Rent developer and operator for seniors comes as a direct result of our customers selecting rental as their preferred option when choosing a Pegasus home. Renting is flexible, allowing our customers to be more agile when moving, as well as providing greater financial freedom and the ability to choose to move closer to family and friends. The need is clearly there, and we are responding to it.”Steve Bangs, CEO, Pegasus
Knight Frank’s research also reveals that the number of private rental properties for seniors is expected to increase by a 166% over the next five years in the UK, from almost 5,000 to over 13,000 – demonstrating a shift in attitudes toward homeownership in later years.
Pegasus already has a strong track record of rentals. At its Latheram House community in Cheltenham, 83% of current residents are renters.
“These are rental customers who have chosen to live in a thriving location, with the flexibility that independent living brings with it, by removing the burdens that may have come with their former homes in terms of management and maintenance. Whilst support is on hand if needed, the primary focus is to create a maintenance-free environment, enabling them to spend their time on the things they really love.”Steve Bangs, CEO, Pegasus
Lifestory has engaged Savills to source a like-minded strategic investment partner to assist in funding the future later living Build to Rent schemes – and in turn becoming the pre-eminent developer and operator of mid-market seniors rental in the UK.