UK private equity firm Henley has acquired a portfolio of assisted living homes for £70 mln (€77.3 mln) for its new Henley SIPUT fund which held its first close in July.
The portfolio comprises 49 properties located across the UK all let on long-term, CPI-linked leases. Henley said the properties were all sourced off-market and are immediately income-generating.
Henley SIPUT (Secure Income Property Unit Trust) is seeking to raise £400 mln (€442 mln) within the next six months. It will focus on the fast-growing supported housing sector, targeting residential investments across the UK for the provision of long-term homes for vulnerable adults. It will focus in particular on assets that have undergone development upgrades tailored to meet the specific care requirements of tenants.
The fund aims to deliver returns of over 5% per annum during its 25-year life.
Commenting on Henley’s first fund, Ian Rickwood, CEO of Henley Investments, said: ‘The launch of Henley SIPUT marks Henley’s first fully-discretionary fund and I’m pleased to announce the completion of our first deal through the fund utilising Henley’s significant industry expertise.’
‘With growing demand in the supported living sector, there is a significant need and market opportunity, matched with increasing institutional interest in the space. We offer these institutional investors access to long-term inflation linked secure and sustainable returns, as well as providing much needed homes for vulnerable adults, making a positive difference to people and communities,’ he said.
Henley has a long track record in the supported living sector, having worked with local authorities and the National Health Service (NHS) since 2012 to identify sector requirements and commission supported housing schemes. Over the past four years, the firm has carried out a number of transactions through its Henley Healthcare platform totalling around £250 mln (€276 mln).
Established in 2006, Henley focuses on development, investment and asset management in the commercial, residential, healthcare and alternative real estate markets. The company currently has around $1.5 bn (€1.3 bn) in assets under management (as of mid-2017).
