Fiera Real Estate has signed a strategic partnership with SimplyPhi, centred around affordable rental housing for local government.
Fiera Real Estate, investing on behalf of its Fiera Real Estate Long Income Fund UK, will launch an initial tranche of £30m equity to acquire a geographically diversified portfolio of homes through the partnership.
The homes will be let on 20-year index-linked leases direct to local authorities.
SimplyPhi, a trading name of Phi Capital Investments, is a property and technology provider to public sector organisations and real estate investors.
The partnership represents FRELIF’s first foray into the affordable housing sector. The fund was attracted to the long, strong, and progressive income generated by CPI-indexed local authority leases.
FRELIF co-fund manager Anne-Marie Keane said: “We have been looking closely at the affordable housing sector for some time and this new partnership with SimplyPhi is unique in that it will deliver diversified government backed income let on 20+ year leases whilst benefitting from annual CPI indexation.”
SimplyPhi was advised exclusively by Lakefield Capital in setting up the strategic partnership.
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