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REIT eyes £50m worth of shared ownership acquisitions after new partnership
Fast-growing Residential Secure Income (ReSI) has agreed a deal that is expected to see it acquire “at least” an extra £50m of shared ownership properties over the next three years.
The real estate investment trust (REIT), which is owned by asset management firm Gresham House, has secured the partnership with Manchester-based property investment group HSPG.
Under the deal, ReSI said it has the exclusive option to buy HSPG’s entire pipeline of shared ownership homes in tranches once they have been built.
HSPG will be responsible for letting the homes to shared owners.
The first transaction has already completed, with ReSI buying 21 homes at a development in Felixstowe, Suffolk, for £2.7m.
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ReSI has been building up its portfolio of shared ownership homes through a string of deals, including acquisitions from Orbit and Metropolitan Thames Valley.
As of the end of June, ReSI owned 3,291 properties, which also includes independent retirement living homes – its other area of focus.
The REIT also revealed today that it has agreed a £25m revolving credit facility with Santander, which involved expanding a £10m facility. The firm also owns for-profit registered provider ReSI Housing.
Ben Fry, managing director of housing at Gresham House, said the initial deal with HSPG will “add further inflation-linked, income-generating assets, whilst helping to bring forward much-needed affordable housing”.
HSPG, the trading name for Hornsearle Property Investments, was launched in Manchester in 2015. In 2020 the firm bought for-profit registered provider Park Properties Housing, which acquires affordable rent and shared ownership homes through Section 106 agreements.
On the deal with ReSI, Guy Horne, chief executive at HSPG, said: “As we continue to grow our presence in the competitive UK property development market, this funding provides further confidence that we will be able to deliver socially impactful housing for communities up and down the country.”
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