Residential Secure Income plc has exchanged contracts to acquire 34 new build homes at Totteridge Place, which it plans to convert into Shared Ownership homes.
The Properties are being purchased from housebuilder Crest Nicholson for a total consideration of £16.45 million and form part of Crest Nicholson’s Totteridge Place development, a collection of 124 contemporary houses and apartments on Whetstone High Road. ReSI will hold the Properties through its wholly owned subsidiary ReSI Housing Limited, which is regulated as a for-profit Registered Provider of social housing and expects to complete on the majority of the acquisitions by the end of October. Metropolitan Thames Valley Housing, one of the largest housing associations and a recognised leader in Shared Ownership, will act as managing agent for the Properties.
The mix of one, two and three bedroom properties, held by ReSI on a long-leasehold basis of 250 years, will be converted into Shared Ownership units which allow a wider range of first time buyers to get onto the housing ladder.
The acquisition will be leveraged post acquisition with long-dated investment grade equivalent debt secured against the portfolio.
ReSI intends to grow its portfolio of Shared Ownership properties through further acquisitions from developers and housebuilders (both private and housing associations), utilising government grant funding.
David Orr, non-executive chairman of ReSI Housing, commented: “We are excited that ReSI Housing is combining private sector equity with grant funding to enable the provision of further shared ownership homes, allowing new buyers to take their first steps onto the housing ladder. This transaction shows how those for-profit providers that are long-term asset holders can make a positive contribution to the social housing sector, by enabling developers to accelerate their development ambitions and increase the provision of affordable homes.”
Ben Fry of ReSI Capital Management Ltd, ReSI's fund manager, added: “Closing our first shared ownership acquisition, in partnership with Crest Nicholson and Metropolitan Thames Valley Housing, is a significant milestone and the start of what we anticipate will be long-term partnerships with both organisations. Becoming a Registered Provider positions ReSI Housing to support the delivery of affordable accommodation across the UK, whilst at the same time identifying new ways to leverage our private and public-sector relationships to deploy capital into long term, visible income streams.”