International investment management group Henley Investment Management has launched its second fund focused on social housing in the UK.
Henley Secure Income Property Unit Trust II (SIPUT II) is seeking to raise £1bn over the next three years to invest in the UK’s social housing sector, focusing on homes for the most vulnerable people in society. It hopes to provide more than 1,000 homes over the period.
Two local government pension schemes are seed investors in the first close of SIPUT II, with a target first year funding commitment of £300m for the open-ended fund, and investment objectives of a 5-6% annual dividend and a 6-7% total return.
Stuart Savidge, fund managing director at Henley Investment Management, said: “SIPUT II will provide secure accommodation for some of the most vulnerable people in society and at the same time generate a strong, inflation-linked income stream for investors. We only see an increase in demand from the public sector for this type of accommodation, and bringing additional capital to a world which sees individuals suffering the indignity of living in inappropriate accommodation is highly beneficial to society as well.”
Henley’s chief executive Ian Rickwood added: “This is an important step for our SIPUT programme as we deliver investments with impact and purpose, as well as income that is secure and protected against inflation. It is an important step for Henley more generally as we continue our journey on building a funds-led business”.
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