Orbit sells 1,300 later living homes to non-profit management company ELM

Orbit Group has sold 1,368 later living homes to non-profit retirement property management company ELM Group for an undisclosed sum.

The 45,000-home association has disposed of the homes, which are spread across 30 local authorities, as part of its “densification” strategy to drive efficiencies.

The sale includes 1,178 private retirement leasehold apartments, 168 private retirement leasehold houses and bungalows, 17 general needs and shared ownership houses and bungalows.

Paul Richards, group director of customer and communities at Orbit, said: “We are delighted to complete this transfer with ELM Group. As a specialist provider in the retirement sector, we believe ELM Group will be able to offer long-term benefits to residents.

“This transfer also supports our densification strategy and creates operational economies of scale across our wider portfolio.”

ELM will be the freeholder and provide property management and sales administration services for the acquired properties. ELM  said that the transfer of properties will take place in three stages. The first stage took place yesterday (1 November), while the second and third stages will take place in February and March.

ELM, which started life as Retirement Lease Housing Association, currently owns 3,300 units, the majority of which are in the South of England.

ELM has said it has introduced new senior leadership roles, including head of estates and director of service improvements roles, to be able to facilitate its expansion.

The company’s current area operations manager Lynette Foli will take on new projects role in which she will manage the integration of new properties into the ELM portfolio and support leaseholders during the transition.

Lorraine Collis, chief executive of ELM Group, said: “This is an incredible, significant time for ELM Group as we enter a period of the greatest expansion the organisation has seen in such a short space of time. The acquisition has presented some challenges for the business and no doubt there will be more to come, however ELM Group was built on a foundation of pioneering the retirement housing sector so we are perfectly positioned for ensuring the transition from Orbit to us is successful.

“We’ve made the necessary changes to our corporate structure to ensure we can continue delivering the same service excellence we’ve become known for, with an honest, upfront, and ethical approach to property management.”

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Once the acquisition has been completed, ELM is set to own 4,368 units, which represents a combined growth of nearly 50% across ELM’s owned and managed properties.

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