European investment firm Patron Capital has announced the launch of a new affordable housing joint venture with Oak Housing and its shareholders Bmor and T&B Capital.
The joint venture is looking to acquire up to £100 mln (€115 mln) of assets, with a target investment size of between £10 and 20 mln, and an initial focus on London boroughs.
The joint venture will look to acquire and convert suitable properties for the provision of general needs homelessness, temporary housing, section 106, keyworker and shared ownership opportunities. It has completed its first acquisition through the purchase of Kings Paget Hotel in West Drayton, Hillingdon. The 14,000 sq ft former hotel was acquired for £4 mln and will be refurbished and repurposed for use as high quality affordable housing by public sector partners.
The joint venture has been advised by Cap Real Estate, a specialist real estate funding advisory business based in London.
Keith Breslauer, managing director of Patron Capital, said: ‘Social purpose is a core pillar to Patron Capital, both in how we do business and in our philanthropic efforts, so this joint venture with Oak Housing was a natural next step for us.’
‘The last 12 months has been one of the most challenging environments the sector has seen in generations, and over this time it has become clear to us that great quality affordable housing is the bed rock of creating safe, healthy communities,’ added Lanek Banga, chief executive officer of Oak Housing.
