London-listed Residential Secure Income (ReSI) is buying a portfolio of retirement homes from Places for People for £40.2m (€44.9m).
The real estate investment trust said it has agreed to acquire the 478-property retirement homes portfolio from the UK’s housing associations. ReSI has already completed the acquisition for around 421 of the properties, with completion of the remainder anticipated within 3 months.
The portfolio consists primarily of one-bedroom flats and is located across 284 purpose-built retirement schemes, with over 93% located in Southern England, including in the Greater London area.
The portfolio, which is leased to retirement-aged residents, will continue to be managed by Girlings, part of the Places for People Group.
Ben Fry of ReSI Capital Management, ReSI’s fund manager, said: “The portfolio offers a later-life independent living solution with security of tenure but without the hassles of ownership, and serves a fast-growing, yet hugely fragmented and underserved, sector of the market.
“Our strategy continues to be focused on delivering a secure, long-term income stream to shareholders. We are making good progress in building a high-quality portfolio that meets these disciplined investment criteria, and expect this progress to continue.”
After this acquisition, ReSI will have invested £215m in assembling a portfolio which comprises 2,414 residential units.