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Homes England supports new UK housing fund to be launched by national housing association and global asset management giant
A new UK housing fund is set to be launched by a global asset management giant and one of the country’s largest housing associations, potentially with direct government investment, Inside Housing can reveal.
Homes England, the government’s housing delivery body, has recommended to the government that it takes an equity investment in a new UK housing fund that is soon to be launched by BMO Real Estate Partners (BMOREP) in partnership with 55,000-home association Home Group.
BMOREP is a subsidiary of BMO Global Asset Management, the North American asset management firm that manages funds worth $263bn (£200bn).
It is understood that the new UK housing fund will be used to deliver homes across the country, but there is little detail about the types of homes and how big the fund will be.
Both Home Group and BMOREP are not yet able to comment on the details of the fund, but BMOREP said an announcement could be expected in the coming weeks.
Homes England has indicated to Inside Housing that the plan could be geared towards the private rented sector.
A spokesperson for Homes England told Inside Housing: “A private rented sector that is professionally managed by experienced organisations with credible, long-term track records forms an important part of delivering the homes the country needs – providing stable homes for those who rent and attracting new long-term investment into housing.
“We support the efforts of BMO Real Estate Partners and Home Group to address this.”
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In a special meeting of Homes England’s investment committee in October, the committee’s members recommended to MHCLG that it should take an equity investment in the BMO fund.
However, it appears that the general election has so far prevented MHCLG from taking a decision on whether to back the fund.
In a statement to the committee in November, Nick Walkley, chief executive of Homes England, said that the application was with MHCLG permanent secretary Melanie Dawes but that a decision was not expected to be made until after the election.
A source close to government told Inside Housing that MHCLG was still considering Homes England’s recommendation.
BMO Real Estate Partners is a property specialist that manages assets of £6.2bn for clients across Europe and runs dozens of funds across the continent.
One of its largest funds in the UK is its UK Property Fund, which is worth £523m and invests in industrial property, offices, retail and warehouses as well as standard retail properties and car showroom space.
Home Group operates across England and Scotland in 220 UK local authorities to provide homes and integrated housing, health and social care services. Its turnover in 2018/19 was £367m and its surplus was £47m.
It currently has an aim to deliver 10,000 new homes by 2022 and it was one of the first housing associations to become a Homes England strategic partner, securing £85m to start an additional 2,300 homes by March 2022.
Mark Henderson, chief executive of Home Group, told Inside Housing: “We are continually looking at new ways of working in order to disrupt the housing market.
“Partnering with some of the best in the business is what we have always done, and will continue to do, so we can deliver the right homes in the right places for those who need them.”
