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For-profit and European investor buy three affordable housing projects worth £20m
A for-profit social housing provider and a European real estate investor have acquired three affordable housing projects worth a total of £20m, Inside Housing can reveal.
Oak Housing and Patron Capital have invested in three affordable and key worker housing projects since they formed a joint venture in 2021.
Patron Capital told Inside Housing the partnership was continuing to target new projects.
The joint venture was announced three years ago with the aim of acquiring £100m of assets. At the time, the partners said they were focusing on affordable housing in London boroughs.
The idea was to buy and convert suitable properties for the provision of general needs homelessness, temporary housing, Section 106, key worker and shared ownership homes.
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In 2021, the joint venture completed its first acquisition of Kings Paget Hotel in Hillingdon, a 14,000 sq ft property bought for £4m which was refurbished to be used as affordable housing.
Oak Housing was established in 2012 and registered as a for-profit housing provider in 2016. It offers affordable housing to local authorities and NHS trusts in London and the South East of England.
The for-profit provider is backed by private equity firm ABT Capital and property company Bmor. In its latest accounts for the year ending August 2023, Oak Housing posted a post-tax profit of £1.1m, up from a £25,000 loss the previous year.
Patron Capital was founded in 1999 by Keith Breslauer, a former executive vice-president of Lehman Brothers. The company is based in London, Luxembourg and Spain. It represents around €5bn of capital across property, distressed debt and credit-related businesses.
As well as its joint venture with Oak Housing, Patron runs a social impact investment fund called the Women in Safe Homes Fund. The fund was created in partnership with Resonance and provides homes for women and their families at risk of or experiencing homelessness, many of whom may be facing domestic abuse or other challenges. As of June 2024, the fund houses a total of 270 women and children.
In 2022, Oak Housing began managing 10 accommodation blocks in Kings Lynn, totalling 282 homes for key workers and students at the nearby Queen Elizabeth Hospital. In the same year, it took on 59 affordable rented homes and 18 shared ownership homes at the Fugglestone development in Salisbury, backed by the CBRE Affordable Housing Fund.
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