Residential Secure Income (ReSI) and Morgan Sindall Investments (MSI) have set up a £300m (€341m) housing investment partnership to target UK’s shared ownership residential market.
The Housing Investment Partnership (HIP) allows ReSI’s fund manager ReSI Capital Management (RCM) and MSI to initially target the delivery of 1,500 shared ownership homes.
ReSI, which listed in July 2017, made its first investment in shared ownership residential in October 2018, when it acquired a £16.5m portfolio of 34 homes from Crest Nicholson.
Having fully invested the proceeds of its initial public offering, ReSI said it intends to invest through HIP using proceeds from investment grade debt secured against the wider £240m residential portfolio of 2,500 mixed tenure homes ReSI has built up since listing.
Lisa Scenna, a managing director at Morgan Sindall Investments said: “HIP highlights MSI’s strong investment credentials and our ability to deploy large volumes of institutional capital into the residential market across our regeneration pipeline.
“Our partners will benefit from this initiative as HIP will significantly lower the barriers to home ownership and will benefit people who live in the communities where we work”.
Jonathan Slater, the chief executive of ReSI Capital Management, said this new partnership is a further extension of ReSI’s strategy to deliver a secure, long term income stream to shareholders.
“This new agreement ensures a strong pipeline of units for ReSI to continue its investment programme in shared ownership through ReSI’s registered provider of social housing, ReSI Housing, and further emphasises our ability to work with leading housing partners.”