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Abri plans to double new homes target to 20,000 by focusing on alternative funding models
Abri has set out to double its new homes target to 20,000 over 10 years by bringing in “significant alternative financing”.
Abri plans to double new homes target to 20,000 by focusing on alternative funding models #UKhousingThe 58,000-home group has this week launched a new investment strategy, which outlines its plans to invest “record amounts” in existing homes.
Abri’s strategy said it will continue to deliver its original target of 1,000 homes per year with on-balance sheet funding, and will increase this output “if further efficiencies unlock additional capacity”.
In order to deliver 20,000 new homes by 2036, the group will require alternative financing and “an enhanced funding model incorporating traditional debt financing and equity investment”, the strategy said.
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It continued: “This alternative funding strategy will include, among other routes, equity investment models in which Abri sources, develops and manages the homes, but does not provide all the capital or hold full ownership.
“A risk-based framework will be established to evaluate and implement the most effective models for attracting institutional investment and ensure that these meet Abri’s long-term ambitions for a diverse and flexible funding structure.”
Over the five years of the strategy, Abri will look to “deepen” its role with Homes England through both the Social and Affordable Homes Programme and “devolution opportunities”.
The group will also “formalise long-term partnerships with a small number of like-minded organisations to deliver new homes at scale”.
On existing homes, the strategy detailed how Abri will invest £450m over five years, in energy efficiency improvements, building safety and “essential component replacements”.
As set out in its corporate strategy earlier this year, the group has created a new ‘home and place standard’ which will define the minimum benchmark customers should expect from their home and neighbourhood.
Abri said this will mean homes “go beyond compliance and reflect customer experience, safety and environmental policies”.
The strategy also outlined a commitment to spending £161m on major regeneration projects, including the Sawyers Close scheme in Windsor and three other sites.
Rose Bean, Abri’s chief investment officer, said: “Through our dedicated investment strategy we are committed to ensuring that our existing customers live in homes of an even higher quality; homes that are safer, more energy efficient and underpinned by a clear standard that our customers can hold us accountable to.
“Supported by new avenues of funding and partnerships with like-minded organisations, the strategy also outlines how Abri will help tackle the shortage of housing and expand to build where the need is greatest.”
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