Pan-European institutional investor Patron Capital has teamed up with Oak Housing to launch a £100m (€115.5m) UK affordable housing joint venture.

The venture, which is backed by Oak Housing shareholders Bmor and T&B Capital, intends to target assets worth between £10m and 20m each, and will initially target properties in London.

The venture’s strategy involves acquiring and convert suitable properties for the provision of general needs homelessness, temporary housing, keyworker and shared ownership opportunities.

In a joint statement, Patron Capital and Oak Housing said the newly created venture has completed its first transaction with the acquisition of Kings Paget Hotel in West Drayton, Hillingdon.

The 14,000sqft former hotel was acquired for £4m and will be refurbished and repurposed for use as high-quality affordable housing by public sector partners.

Keith Breslauer, managing director of Patron Capital, said: “Social purpose is a core pillar to Patron Capital, both in how we do business and in our philanthropic efforts, so this joint venture with Oak Housing was a natural next step for us.

“With more than 84,000 households in temporary accommodation in England and 1 in 53 people in London impacted by homelessness, it has never been more important to align our business activity with the needs of those around us, and we look forward to working with Oak as we build our portfolio in this space.”

Lanek Banga, CEO of Oak Housing, said: “The last 12 months has been one of the most challenging environments the sector has seen in generations, and over this time it has become clear to us that great quality affordable housing is the bed rock of creating safe, healthy communities.

“This has inspired us to do more. To this end, we are delighted to be entering into partnership with Patron Capital to increase our portfolio of affordable homes across the country.”

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