McCarthy & Stone begins delivery on £1.5bn investment plans
10 December 2013
In the first quarter since its successful refinancing in August 2013, Britain’s leading builder of retirement housing, McCarthy & Stone, has announced the purchase of 19 new sites, including two sites secured under option agreements. The acquisitions highlight that the company is delivering on its exciting growth plans, with a total planned investment of some £1.5 billion in 250 new sites over the next four years.
This investment programme, which will continue until 2017, will deliver approximately 10,000 new homes and are in addition to approximately 8,300 plots on 263 sites that McCarthy & Stone already owns or controls across the UK. New acquisitions include sites across the country with six in the South West, five in the South East, four in the Midlands and four in the North. The sites are all in central urban locations and range in size from 0.25 to 2 acres [0.1 to 0.8 hectares] and cost from £450k to £3 million. The total cost for the 19 sites is c £27 million and they will deliver approximately 650 units.
The sites include a mix of former uses, such as pubs, police stations, care and nursing homes and a former grain silo site. One proposal involves the redevelopment of part of Kent County Cricket Club’s ground into Retirement Living apartments.
Gary Day, Land & Planning Director for McCarthy & Stone, said: “With the support of our new investors, we are taking advantage of improving market conditions and the growth in demand for retirement housing to rapidly increase the size of our land bank. With it, we are building a healthy pipeline of quality sites for development and providing a strong platform for robust growth. We are actively looking for more sites to deliver our £1.5 billion investment plans.”
The 19 contracted sites will feature all of McCarthy & Stone’s product types, including its Retirement Living and Assisted Living developments.
The Company’s investment plans reflect the significant growth in the need and demand for more specialist retirement apartments. Recent analysis by the Demos think-tank, commissioned by the Home Builders Federation, reveals 58% of over-60s are interested in moving home but that many are restricted by a lack of suitable alternative housing. A quarter (25%) expressed particular interest in buying a retirement property - a total of 3.5 million people - which dwarfs the 100,000 retirement properties currently built.
In the year to 31 August 2013, McCarthy & Stone achieved an 11% uplift in apartment sales to 1,527 (2012: 1,370), delivered a 21% growth in revenue to £310.8m (2012: £257.7m) and a 15% growth in EBITDA to a five year high of £46.0m (2012: £39.9m).
For more information:
Andrew Baud, Tala, firstname.lastname@example.org, 020 3397 3383 or 07775 715775
Notes to Editors:
McCarthy & Stone is Britain’s leading builder of retirement housing, responsible for the construction of more than 45,000 homes for more than 50,000 residents. The company is renowned for its focus on the needs of people in later life.