UK pension manager the Universities Superannuation Scheme (USS) has acquired a portfolio of 3,000 shared ownership homes from US private equity giant Blackstone for £405 mln (€474 mln).
The deal has been executed via Sage Homes, a joint venture between Blackstone and private equity investor Regis Group, launched in 2017. USS is the largest pension fund in the UK.
Sage has to date committed funds for the development of 22,600 affordable rent and shared ownership homes across the UK, of which over 17,000 have been already delivered.
'Through Sage Homes, which was established in 2017, Blackstone has been the largest provider of newly built affordable housing in the country for the last three years,' said James Seppala, head of real estate Europe at Blackstone.
He added that Blackstone had created 'an institutional-grade portfolio' that had in turn attracted 'more long-term institutional capital into the sector'.
USS said it would create a new provider to manage the properties, dubbed Sparrow Shared Ownership, subject to approval by the UK Regulator of Social Housing. David Avery, former chair of Clarion Housing Group, will chair the USS-backed manager, alongside other affordable housing specialists from the public and private sector.
The deal follows Blackstone and Regis' deal with Vistry in June for the delivery of around 1,750 new homes for a total volume of £580 mln.
The portfolio, which is concentrated in the Southeast of England and largely comprises plots from Vistry’s former housebuilding landbank, consists of some 1,750 homes across 36 Vistry developments.
The properties developed by Vistry will be managed by Leaf Living, a buid-to-rent firm backed by funds managed by Blackstone and Regis. Leaf Living was created in 2021.
