Residential Secure Income REIT has completed its first acquisition with the purchase of a £100m UK-wide rental homes portfolio.
The 1,341-home portfolio is concentrated in southern England across more than 250 purpose-built retirement housing blocks.
It comprises long-leasehold and freehold interests in mostly one and two-bedroom flats, operated by Places for People.
Residential Secure Income REIT listed in July after raising 60% of its intended £300m target.
Its fund manager, Resi Capital Management, said it has received offers from institutional lenders for long-dated debt secured on the portfolio, which would deliver equity returns in excess of its total return target.
Since the portfolio is immediately income-producing, the company said it will be able to declare its first dividend for the period ending 31 December 2017.
The rest of the net proceeds alongside leverage are expected to be fully deployed within nine months of its IPO.
Ben Fry, investment manager at Resi Capital Management, said: “The portfolio is operated by one of the leading social housing providers in the Places for People group, and furthers our ambition to become the leading capital partner to social housing providers.
“We will now continue to progress the execution of our £250m pipeline and remain excited by the scale of opportunities available across the sector.”
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