Residential Secure Income has signed an exclusive £50m option with social impact real estate firm HSPG.
The deal will give the REIT the right to acquire HSPG’s entire pipeline of shared-ownership properties on a tranched basis, following completion of the homes. HSPG will retain responsibility for letting to shared owners.
ReSI, which is managed by Gresham House and invests in independent retirement living and shared-ownership property, expects to acquire at least £50m of properties as part of the deal over the next three years.
HSPG chief executive Guy Horne said: “Gresham House is a natural partner for HSPG, and we are delighted to have secured this deal with one of the UK’s most respected affordable housing investors. As we continue to grow our presence in the competitive UK property development market, this funding provides further confidence that we will be able to deliver socially impactful housing for communities up and down the country.”
The first transaction has now been completed, with ReSI acquiring 21 completed homes at the Laureate Fields development in Felixstowe, Suffolk, for £2.7m.
The homes form part of a larger 197-home masterplan developed by Generator Group.
It brings ReSI’s shared-ownership portfolio to 725 homes, with a further 59 homes committed.
Ben Fry, managing director of housing at Gresham House, said: “The transaction will add further inflation-linked, income-generating assets, while helping to bring forward much-needed affordable housing.”
ReSI also announced today that it had agreed a £15m expansion of its £10m revolving credit facility with Santander.
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
