Patron Capital has expanded into affordable housing with a £100m joint venture with Oak Housing and its backers Bmor and T&B Capital.
The partners will seek to acquire and convert properties to provide homeless accommodation, temporary housing, section 106 affordable homes and intermediate affordable as shared ownership.
Patron Capital and Oak Housing have acquired a debut scheme in Hillingdon at the Kings Paget Hotel (pictured) in West Drayton. The 14,000 sq ft former hotel was purchased for £4m and will be refurbished and repurposed as affordable housing for public sector partners.
The joint venture will expand across London into assets with investments of £10m to £20m, as part of a plan to deploy £100m into the sector.
Oak Housing is a for-profit registered provider of social housing based in Waltham Forest. It works with local authorities to provide accommodation for homeless people and longer-term affordable homes, and has a portfolio of 500 homes under management.
Patron’s move into affordable housing follows recent expansion of its build-to-rent portfolio and new student business.
Keith Breslauer, managing director at Patron Capital, said: ““Social purpose is a core pillar to Patron Capital, both in how we do business and in our philanthropic efforts, so this joint venture with Oak Housing was a natural next step for us.
“With more than 84,000 households in temporary accommodation in England and 1 in 53 people in London impacted by homelessness, it has never been more important to align our business activity with the needs of those around us.”
Cap Real Estate is advising the joint venture.
To send feedback, e-mail emma.rosser@eg.co.uk or tweet @EmmaARosser or @EGPropertyNews
