Savills Investment Management’s open-ended core UK affordable housing fund has acquired its third asset.
The manager’s Simply Affordable Homes fund has invested an unspecified sum to acquire a portfolio of 105 homes in Oxfordshire from Blenheim Estates.
Dominic Curtis, fund manager for the Simply Affordable Homes Fund, Savills IM, said: “This acquisition is an excellent addition to the fund. The portfolio is of very high quality and delivers a significant social impact to our residents, with average rent levels close to 60% of market rent.
“This latest transaction further demonstrates our ability to source high-quality assets with leading ESG credentials and it provides investors with immediate and defensive income in a sector where the role of institutional capital is increasingly important to bringing much-needed new product to market.”
The fund is acquiring the assets through its for-profit registered provider, Simply Affordable Homes RP.
Keith Exford, chairman of Simply Affordable Homes RP, said: “Our third acquisition for Simply Affordable Homes exemplifies our commitment to the provision of high-quality and energy-efficient housing that is both affordable and readily available for local communities experiencing undersupply.
“By funding the delivery of these homes, we are bringing immediate additionality to market while responding to strong institutional demand for access to the sector.”
Savills IM launched its affordable homes fund in April last year with Samsung Life Insurance, London CIV, Big Society Capital, Schroder BSC Social Impact Trust and Savills PLC investing £123m (€147m) in the fund, marking the fund’s first close.
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