UK shared ownership housing investor Gresham House Residential Secure Income LP (ReSI LP) has added 163 properties to its portfolio.

London-listed ReSI LP said it has agreed to fund two housing projects being developed in Minehead and Eastry by Stratton Land. Financial details were undisclosed.

In the first deal, which was exchanged in late August, ReSI LP has agreed to forward purchase 69 houses just outside Minehead, Somerset. The first homes on the site are expected to be completed in January next year.

The second transaction in Eastry, Kent, involves ReSI LP agreeing to forward fund the development of a further 94 houses situated three miles outside Sandwich. The former brownfield site will see houses completed and handed over from the fourth quarter of 2023 to the first quarter of 2025.

The open-ended ReSI LP vehicle was launched in May last year and raised £186m (€213m) in its first year. ReSI LP has already delivered almost 1,000 affordable homes in 19 locations across the UK, with a wider pipeline of over 9,000 homes providing an investment opportunity of over £1bn.

Alistair Wardell, investment director at Gresham House, ReSI LP’s manager, said: “These successful investments will help ReSI LP to continue to deliver attractive returns for investors while also supporting the delivery of much needed high-quality affordable housing in Minehead and Eastry, both areas where housing is highly unaffordable for local residents.

“We are pleased to be working with Stratton Land, a family-owned SME business with an outstanding track record of delivery. They demonstrated admirable flexibility in a tumultuous market, to develop these house-led schemes, which provide efficient, sustainable and good value homes at a time of significant cost of living increases.”

Sebastian Arbis, managing director at Stratton Land, said: “Gresham House’s expertise in the residential investment space made it a natural partner for Stratton Land on these transactions and provides the long-term capital necessary to develop these houses in historically undersupplied areas.

“These deals will also support our continued growth across Southern England, enabling us to redeploy capital into our ambitious pipeline of developments.”

Safi Captan, managing director at investment broker Whitedrake, which advised Stratton Land on both transactions, said:

“Gresham House are a tremendous counterparty to kick-start Stratton Land’s ambitious growth plans, having provided innovative solutions to enable the funding of both deals and transacting in an efficient timeframe.”

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