REIT buys 70 shared ownership properties from G15 landlord

News18.03.2110.00 AM by Dominic Brady

Real Estate Investment Trust (REIT) Residential Secure Income (ReSI) has acquired 68 shared ownership properties from a G15 landlord in a transaction worth £5.1m.

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REIT Residential Secure Income has acquired 68 shared ownership properties from a G15 landlord in a transaction worth £5.1m #UKhousing

The deal between ReSI and Metropolitan Thames Valley Housing comprises 53 apartments and 15 houses in low-rise brick buildings, and now takes the REIT’s total shared ownership portfolio to 358 homes.

The REIT, which owns a for-profit registered provider named ReSI Housing, said the acquisition will be funded via its £300m debt facility it agreed last summer the giant University Superannuation Scheme (USS) pension fund.

Ben Fry, investment manager of ReSI Capital Management, and head of housing at Gresham House, said: “We are excited to acquire another portfolio of homes from Metropolitan Thames Valley Housing, further strengthening our existing partnership. The acquisition represents further delivery against our targets to meet full dividend cover by the beginning of October 2021.”

The average share already owned by residents in the 68 homes in Swindon is 44% and ReSI said the properties are “immediately earnings enhancing for ReSI and generate expected inflation-linked leveraged yield in line with ReSI’s 8% total return and c.5% dividend targets”.

The latest transaction comes after ReSI swooped in to buy up 85 shared ownership properties from crisis-stricken Croydon Council at the beginning of the year.

ReSI also highlighted a recent partnership with Metropolitan Thames Valley Housing in London and Cambridge which delivered 138 shared ownership homes during 2020.

Kush Rawal, director of residential development at Metropolitan Thames Valley Housing, added: “Accelerating our sale of these mature shared ownership homes through our expanding partnership with ReSI allows us to reinvest proceeds into our ambitious development programme, helping address the critical lack of affordable housing in England.”