UK firm Residential Secure Income (Resi) has exchanged contracts to acquire a 478-property retirement homes portfolio in the UK from housing association Places for People, one of the UK’s leading housing associations for £40.2 mln (€45 mln).
The acquisition has already completed for a large majority (421) of the properties, with completion of the remainder (57) anticipated within three months.
The portfolio consists primarily of one-bedroom flats and is located across 284 purpose-built retirement schemes, with over 93% located in Southern England, including in the Greater London area. The properties are held on a long leasehold basis, with a weighted average unexpired lease term of 92 years.
In line with Resi’s existing retirement homes, the portfolio offers independent living and does not include the provision of care services. It will continue to be managed by Girlings, part of the Places for People Group, which is responsible for the day-to-day management, rent collection and maintenance.
After this acquisition, Resi will have invested £215 mln in assembling a portfolio which comprises 2,414 residential units.
'This acquisition complements our existing portfolio of retirement flats,' said Ben Fry of Resi Capital Management, Resi’s fund manager. 'The portfolio offers a later-life independent living solution with security of tenure but without the hassles of ownership, and serves a fast growing, yet hugely fragmented and underserved, sector of the market.'
Listed in 2017, Resi is managed by Resi Capital Management, a wholly owned subsidiary of TradeRisks which has a 17-year track record of executing transactions within the UK social housing sector.
