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For-profit agrees £60m deal to buy homes from London association
Property investor Residential Secure Income (ReSI) has agreed a £60m deal to buy 132 new build properties in London from Metropolitan Thames Valley, with plans to turn them into shared ownership homes.
The listed real estate investment trust (REIT) said that it will use grant funding from the Greater London Authority’s Homes for Londoners programme to convert the one, two and three-bedroom flats for shared ownership, which allows buyers to part rent and part buy properties.
Metropolitan Thames Valley will retain management of the portfolio, and the homes will be held in ReSI’s wholly owned subsidiary ReSI Housing, its for-profit registered provider arm, which is chaired by David Orr, former chief executive of the National Housing Federation.
The deal marks the latest move by ReSI to enter the shared ownership market.
The company made its first foray into the tenure in October when it acquired a £16.5m portfolio of 34 homes from Crest Nicholson, which are also managed by Metropolitan Thames Valley.
It later agreed a £300m contract with construction firm Morgan Sindall to fund 1,500 shared ownership homes.
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ReSI will acquire the homes from Metropolitan Thames Valley in two phases using both cash and debt, and will complete the deal in September and December.
The homes – in Clapham, Brixton, Streatham and Balham – are part of Metropolitan Thames Valley’s regeneration of the Clapham Park Estate, a project that comprises 2,500 new homes plus community facilities. Metropolitan Thames Valley plans to recycle the proceeds from the sale of the homes to ReSI into further developments.
Ben Fry, managing director at ReSI Capital Management, ReSI’s fund manager, said: “This is a further example of how ReSI is able to contribute positively to the delivery of affordable housing in the UK, and demonstrates our ability to acquire shared ownership portfolios through partnerships with housing associations.”
Kush Rawal, director of residential investment at Metropolitan Thames Valley, added: “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.”
