London-listed Residential Secure Income (ReSI) has completed its first transaction with the acquisition of 1,341 retirement properties for £100 mln (€112 mln).
The portfolio is income producing, allowing ReSI to declare its first dividend for the period ending 31 December 2017. In addition, the acquisition will enable ReSI, which listed on the main board of London Stock Exchange in July, to enter the UK' real estate investment trust (REIT) regime.
The UK-wide portfolio is concentrated in Southern England and comprises long-leasehold or freehold interests in primarily one and two bedroom modern, warden-assisted flats spread over more than 250 purpose-built retirement housing blocks.
The portfolio provides RPI-linked assured tenancies to retirement-aged residents, offering lifetime security of tenure. Places for People Group is responsible for day-to-day management, rent collection and maintenance.
ReSi's said that its manager, ReSI Capital Management, had received a number of offers from institutional funders for long-dated investment grade equivalent debt secured on the portfolio which woud 'deliver equity returns in excess of ReSI’s total return target'. The fund manager is working to complete the debt transaction with its preferred funder.
ReSI Capital Management has also identified a number of asset management opportunities to make operational improvements within the portfolio, which have the potential to enhance returns.
Ben Fry, investment manager of ReSI Capital Management, commented: 'The Portfolio is operated by one of the leading social housing providers in the Places for People group, and furthers our ambition to become the leading capital partner to social housing providers. We will now continue to progress the execution of our £250 million pipeline and remain excited by the scale of opportunities available across the sector.'
