July 10, 2019 Finance

Oz Real Estate completes £525m financing for retirement living company the PegasusLife group

Oz Management and Lloyds Banking Group PLC,  have announced that certain funds managed by Oz Real Estate in partnership with Lloyds, closed on an up to £525mm whole loan facility  secured by assets owned by the PegasusLife Group, a retirement living company in the United Kingdom. The PegasusLife Group is wholly-owned by funds managed by Oaktree Capital
Management, L.P. .
The PegasusLife Group will use the proceeds of the Whole Loan to refinance and consolidate its existing borrowing facilities as well as provide capital for further growth.
The PegasusLife Group is one of the largest providers of age-exclusive properties in the United Kingdom. The Company develops and sells retirement living apartments under its brands “PegasusLife” and “Renaissance Retirement,” targeting individuals over the age of 60. The Company’s portfolio currently consists of 50 sites across the United Kingdom spanning a variety of locations from coastal and market towns to city centres.
Steven E. Orbuch, Founder and President of Oz Real Estate, said, “We believe the UK retirement housing sector is poised to benefit from strong demographic trends as well as the greater desirability of purpose-built senior housing with modern design and conveniences. The PegasusLife Group is a best-in-class company focused on the development of next generation retirement home communities with an industry leading management team. We are pleased to complete this financing transaction that incorporates its existing portfolio while providing a facility to accommodate future growth.”
Klaus Betz-Vais, Managing Director and Head of Global Investors at Lloyds Bank Real Estate and Housing said: “In the UK, the senior living sector is still at a relatively early stage in its development but, with a growing aging population, it is set to become ever more important. A thriving sector will be vital in delivering an optimal mix of housing stock, ready for the UK’s future and we’re pleased to be playing a central role in supporting this.”
Mark Dickinson, CEO of the PegasusLife Group said: “This new financing is another milestone for the PegasusLife Group, which consolidates our existing facilities and frees up further capital for growth at an exciting time for the business.
Across the UK, through its PegasusLife and Renaissance Retirement brands, the group is delivering quality accommodation for the over 60s at a time when there is a chronic and growing undersupply. Most recently with projects completing in Hampstead, Falmouth, Cheltenham, Harpenden and Sevenoaks, and looking forward to imminent site completions at Brockenhurst, Sandhurst, Crowthorne, Westminster and Bristol, amongst others. The backing of Oz and Lloyds is a testament to the quality of the product, market opportunity and our team. We look forward to working closely with our funders to deliver the retirement accommodation that the UK population demands.”
Oz and Lloyds’ legal advisors were Linklaters LLP and Bryan Cave Leighton Paisner LLP. PegasusLife’s legal advisors were Allen & Overy and Steptoe & Johnson. The financing was brokered by Raingain Marsh.

For additional information, please visit Oaktree’s website www.oaktreecapital.com

Pictured above Mark Dickinson


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