Residential Secure Income’s fund manager ReSI Capital Management and Morgan Sindall Investments have agreed a new housing investment partnership.
The partners will initially target the delivery of 1,500 shared-ownership homes with a value of up to £300m.
ReSI intends to invest through the HIP using proceeds from investment-grade debt secured against its wider £240m residential portfolio of around 2,500 mixed tenure homes, which it has built up since listing in July 2017.
Last July, ReSI, through its subsidiary ReSI Housing, became the first publicly listed investment fund to become a registered provider with the Regulator of Social Housing. ReSI made its first investment in shared-ownership housing in October 2018, when it acquired a £16.5m portfolio of 34 homes from Crest Nicholson.
Jonathan Slater, chief executive of ReSI Capital Management, said: “This new partnership with Morgan Sindall Investments is a further extension of our strategy to facilitate the much needed supply of new homes in the UK and enable more first-time buyers to get a foot on the housing ladder through shared ownership, while at the same time delivering a secure, long-term income stream to shareholders.
“This new agreement ensures a strong pipeline of units for ReSI to continue its investment programme in shared ownership through ReSI’s registered provider of social housing, ReSI Housing, and further emphasises our ability to work with leading housing partners.”
Lisa Scenna, managing director at Morgan Sindall Investments, added: “The HIP highlights MSI’s strong investment credentials and our ability to deploy large volumes of institutional capital into the residential market across our regeneration pipeline. Our partners will benefit from this initiative as the HIP will significantly lower the barriers to home ownership and will benefit people who live in the communities where we work.”
MSI was advised by GVA’s residential investment team.
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