Shepherds Bush Housing Group has bought a portfolio of 192 social rented homes in Ealing, west London for £43m.
Project Oak, was brought to market in March, with a £37.4m price tag, on behalf of a private charity.
The homes generate a net rental income of £1.67m, with the sale price reflecting a 3.9% net initial yield.
The properties are let on individual leases to social housing provider Plexus UK, guaranteed by Mears Group, for an unexpired lease term of 15 years, and further secured by a nominations agreement with Ealing Council for a remaining 55 years.
The freeholds of nearly 60% of the assets – located around Northolt, Southall and Greenford – are owned by the London Borough of Ealing, with the remainder held by private landlords or housing associations.
Richard Lines, partner at Gerald Eve, who advised the seller, said: “We received overwhelming interest in the portfolio, driven by mounting investor appetite for residential assets combined with a surge in demand for socially responsible real estate.”
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