Residential Secure Income plc (LSE: RESI), which invests in affordable shared ownership, retirement and local authority housing, has exchanged contracts with Metropolitan Thames Valley Housing to acquire 132 new build units for £60m at Clapham Park.
Residential Secure Income plans to convert the 1, 2 and 3 bedroom units into Shared Ownership homes, utilising government grant funding.
The Portfolio is intended to be held through Residential Secure Income plc’s wholly owned subsidiary ReSI Housing Limited, which is regulated as a for-profit Registered Provider of social housing. The Portfolio will be acquired in two phases using a mix of existing cash resources and debt and is due to complete in September and December at which point ReSI will have a fund level LTV over 40%.
The Clapham Park estate regeneration project by Metropolitan Thames Valley Housing will provide 2,500 new homes, a community hub, a new community centre and new shops, of which 700 have already been delivered.
ReSI’s £60m acquisition will enable Metropolitan Thames Valley Housing to recycle the proceeds into further developments thus supporting them in the delivery of new homes.
Avison Young advised Metropolitan Thames Valley Housing.
Burak Varisli, Avison Young commented: “Among the growing volumes of private capital invested into affordable housing sector, this transaction is a significant milestone not only because it will provide 132 units of additional shared ownership units into the sector, but it also demonstrates the formation of a long-term partnership between Metropolitan Thames Valley Housing and ReSI with the alignment of their interests for the benefit of the affordable housing sector.”
Ben Fry of ReSI Capital Management Ltd, ReSI's fund manager, added: “This is a further example of how ReSI is able to contribute positively to the affordable housing being delivered across London. The acquisition also demonstrates our ability to acquire Shared Ownership portfolios through partnerships with developing housing associations, and strengthens our partnership with Metropolitan Thames Valley Housing. ReSI has now developed an exciting pipeline of shared ownership housing with a range of institutional partners, including Crest Nicolson, Morgan Sindall and Metropolitan Thames Valley Housing.”
Kush Rawal, Director of Residential Investment at Metropolitan Thames Valley commented: “We are delighted to have sold these private homes to ReSi and to be responsible for their onward delivery as shared ownership. Clapham Park is one of the most important urban regeneration schemes and is treated as such within this key borough. As one of the largest providers of affordable housing, our continuing involvement with this vital project gives us the opportunity to provide much needed affordable housing in an area where there is high demand.”