Octopus completes first transaction for affordable housing strategy

Golding Homes has transferred 180 affordable homes to NewArch Homes, a registered provider of social housing owned by a fund managed by Octopus Real Estate, a UK specialist real estate investor and lender. 

The transaction is the first major deployment by the Octopus Affordable Housing Strategy, which Octopus said it “aims to accelerate the much-needed delivery of quality, affordable homes in the UK”.

By funding the construction of new housing and making strategic acquisitions of existing stock, the strategy works to increase the total capital available for the supply of affordable housing, the fund manager added. 

The assets acquired are located in Bexley, Dartford, Sevenoaks, and Wealden, and include a mix of 111 affordable rental homes, 68 shared-ownership homes and one leasehold houses and flats asset. All the properties are between two and six years old. 

Housing management services will now be delivered by Southern Housing. 

Octopus added that the capital raised through its first close in December is now committed, with “a significant element now fully invested”. This means the strategy “has demonstrated its ability to deploy funds efficiently and quickly, into high-quality homes with reputable partners, to help address a key societal challenge”, Octopus added.

Peter Merchant, investment director at Octopus Real Estate, said: “We’re delighted to have acquired these modern, high-quality affordable homes.

“At Octopus Real Estate our aim is to work with housing providers and local authorities to accelerate the delivery of affordable homes, and we’re pleased this transfer will allow Golding Homes to reinvest funds to further increase the supply of affordable housing in the local community.”

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