Global investment firm Sixth Street is investing in Park Properties Housing Association (PPHA) to help the housing association build new affordable homes in the UK.
Sixth Street is investing as part of a partnership with social and affordable housing investor HSPG, which acquired PPHA in 2020.
PPHA intends to invest more than £1bn (€1.14bn) to deliver “high-quality, affordable new-build homes and sustainable communities”.
Sixth Street said it will provide the majority of the equity capital, with HSPG continuing to lead the strategic direction, asset management and growth of PPHA’s platform alongside the company’s existing management team.
Giulio Passanisi, partner and head of European real estate at Sixth Street, said: “This investment marks a significant expansion of Sixth Street’s ongoing commitment to the UK residential market and aligns with our long-dated, patient-capital investment model. At Sixth Street, we are dedicated to playing our part in making the UK more affordable by addressing the critical shortage of quality housing.
“With HSPG’s specialist expertise and in partnership with UK homebuilders, we feel well positioned to scale PPHA and accelerate the delivery of high-quality, purpose-built affordable homes that will help strengthen surrounding communities.”
Guy Horne, CEO of HSPG, said: “This partnership marks a significant step in scaling PPHA as a leading platform for affordable housing delivery. Institutional capital, deployed through for-profit registered providers such as PPHA, is playing an increasingly important role in addressing the imbalance of affordable homes in the UK.
“Through PPHA, we are building a scaled platform to deliver high-quality affordable homes, with a clear focus on service delivery, customer outcomes and long-term performance.”
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