Fiera Real Estate via its Long Income Fund UK has struck up a strategic partnership with Phi Capital Investments, with a first deal being a portfolio of homes let on 20-year-plus index linked leases direct to the UK government local authorities.
In the first foray into the UK affordable home sector, the fund is investing an initial €30 mln (€34 mln) tranche of equity to acquire the geographically diversified portfolio that can be used by local government to help house those who are most in need and ease the increasing burden on temporary accommodation.
Anne-Marie Keane, co-fund manager, commented: ‘We have been looking closely at the affordable housing sector for some time and this new partnership with online portal, SimplyPhi, is unique in that it will deliver diversified government backed income let on 20+ year leases whilst benefitting from annual CPI indexation.’
‘Importantly, whilst achieving all of the fund’s key investment themes, we are also helping to address one of the biggest crises of our time being the woeful and ongoing undersupply of affordable accommodation for the most vulnerable in our society. We are happy to be leading the way in this most important of investment areas.’
There are currently 1.2 mln UK households waiting for affordable housing and 100,000 in temporary accommodation including 120,000 children.
SimplyPhi was advised by Lakefield Capital.
