Birchgrove Expands into London with £68 Million, 78-Apartment Development in Hampton Court

Birchgrove, a leading provider of rented retirement homes in the UK, continues its expansion into London with the acquisition of a 78-apartment development in Hampton Court. This marks the eighth site in Birchgrove’s growing portfolio across the South-East. The £39 million deal to acquire the site was completed with Octagon Developments, known for designing and building high-quality homes in Southern England. Octagon Developments will deliver the apartments on a turnkey basis by 2025.

This development is Birchgrove’s eighth collaboration with equity partners Bridges Fund Management, following the successful exit of its first two neighborhoods to M&G last year. The debt for this project is provided by Beaufort Capital and represents their fourth deal with Birchgrove. The project’s Gross Development Value (GDV) is expected to increase to £68 million once all units are fully let.

Situated within the sought-after Hampton Court Estate, the development will offer 78 contemporary, self-contained assisted living one-, two-, and three-bedroom apartments for independently minded renters aged over 65. It will also feature extensive communal facilities, including a restaurant, club room, licensed bar, wellness suite, library, and landscaped gardens.

Research commissioned by Birchgrove indicates that, with planning approval, the project could provide 107 bedrooms and free up an additional 179 bedrooms in family housing in the local area. This would result in a net increase of 72 bedrooms available on the private market by utilising the site for assisted living, helping address local housing shortages.

The Hampton Court development represents the latest expansion for Birchgrove as the demand for retiree rental living continues to grow. According to the English Housing Survey, the number of pensioners in rented accommodation is expected to double to over 1 million in the next decade. Given the UK’s aging population and increased demand for retiree rental accommodation, Birchgrove is aggressively scaling its network of communities both within and beyond the M25. Hampton Court is Birchgrove’s second development in the capital, following the acquisition of a site in Chiswick, West London, last year.

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Currently operating three retirement communities across the South-East, with three more communities under construction and available for rental off-plan, two additional London sites acquired (Chiswick and Hampton Court), and negotiations underway for a ninth location, Birchgrove is positioned to meet the growing demand for retirement rental housing.

Honor Barratt, Chief Executive of Birchgrove, said, “Our new site at Hampton Court will encapsulate all the benefits of the Birchgrove offering: beautiful, purpose-built apartments, a flexible rental model, publicly accessible communal spaces and a development that frees up homes for local families. Imagine being able to sit on your balcony and look over the Thames into the back garden of Henry VIII – who wouldn’t want to live like that? With more and more retirees looking to rent, London is firmly in our sights to expand our portfolio, and having secured sites in Chiswick and Hampton Court we look forward to announcing further exciting news in the capital soon.”   

Tim Banks, CEO of the Octagon Group, commented, “We are delighted to have sold such a significant and impressive Surrey site to Birchgrove, who, like Octagon, offer a unique customer-first service”.