REIT acquires 191 shared ownership properties from major landlord

News31.03.2111.50 AM by Lucie Heath

Residential Secure Income (ReSI) has purchased 191 shared ownership homes from Orbit in a deal worth £16m.

The deal included 180 houses and 11 apartments across England (picture: Getty)

Sharelines

ReSI has acquired 191 shared ownership homes from Orbit #UKhousing

The transaction includes 180 houses and 11 apartments located across 18 counties in England, bringing ReSI’s total shared ownership portfolio to 549 homes.

Real estate investment trust (REIT) ReSI, which owns a for-profit registered provider named ReSI Housing, said the acquisition will be funded through its £300m, 45-year debt facility that was put in place in July last year.

The average share of homes already owned by the residents is 43%, according to the REIT.

Ben Fry, managing director of investment at ReSI Capital Management and head of housing investment at Gresham House, said: “We are delighted to agree this £16m acquisition from Orbit, which was facilitated by the new property management team joining ReSI Capital Management, as we announced last week. The homes will follow ReSI’s best practice approach, as set out in our shared ownership customer and environmental charters.

“Rising demand, and historic undersupply, means a growing need for affordable housing, 94% of which is currently provided by not-for-profits such as Orbit. ReSI’s ability to provide these organisations with new capital supports their development of much-needed new affordable homes. We look forward to working further with Orbit in the future.”

Mark Hoyland, group chief executive of Orbit, added: “The transfer of these shared ownership properties is part of our portfolio densification strategy, driving operational efficiencies for Orbit and supporting the delivery of more affordable new homes.

“This opportunity attracted significant market interest and we are delighted that ReSI, as a long-term owner which shares our values, was successful. As a sector leading developer of affordable homes, the proceeds of this deal will fund further much-needed homes in our key operational areas, supporting both our mission to build thriving communities and to help address the critical lack of affordable housing in England.”