Residential Secure Income (ReSI) has expanded its UK shared ownership portfolio with the acquisition of 132 new build London apartments.
The listed firm is investing £60m (€70m) to acquire the portfolio, located at Clapham Park, from Metropolitan Thames Valley Housing (MTVH).
The portfolio, held through ReSI Housing, will be acquired in two phases using a mix of existing cash resources and debt and is due to complete in September and December respectively.
ReSI said it intends to convert the 1, 2 and 3 bedroom apartments into shared ownership homes.
The portfolio, which is located between Clapham, Brixton, Streatham and Balham, forms part of MTVH’s regeneration project on the Clapham Park estate which will deliver 2,500 new homes of which 700 have already been delivered. MTVH will retain management of the portfolio.
This acquisition follows ReSI’s first investment in shared ownership in October when it acquired a £16.5m portfolio of 34 homes from Crest Nicholson, which is also managed by MTVH.
Ben Fry of ReSI Capital Management, ReSI’s fund manager, said: “This is a further example of how ReSI is able to contribute positively to the delivery of affordable housing in the UK and demonstrates our ability to acquire shared ownership portfolios through partnerships with housing associations.
“ReSI has now developed an exciting pipeline of Shared Ownership housing with a range of institutional partners, including Crest Nicolson, Morgan Sindall and MTVH.”
Kush Rawal, director of residential investment at Metropolitan Thames Valley, said: “We are delighted to have sold these private homes to ReSI and to be responsible for their onward delivery as shared ownership.”
The acquisition will enable MTVH to recycle the proceeds into further developments thus supporting MTVH in the delivery of new homes.