LONDON: Residential Secure Income (ReSI) has acquired 191 shared ownership homes from Orbit, one of England’s leading housing associations, for cash consideration of £16 million.
The diversified portfolio comprises 180 houses and 11 apartments, located across 18 counties in England. All these homes are currently occupied and income generating.
The average share of homes already owned by the residents is 43%. Shared ownership allows a purchaser to buy a property with a lower deposit requirement and lower annual costs, making the homes more affordable.
The Orbit portfolio is immediately earnings-enhancing and brings ReSI’s total shared ownership portfolio to 549 homes. The acquisition will be funded through ReSI’s £300 million, 45-year debt facility that was put in place in July 2020.
Ben Fry, investment manager of ReSI Capital Management, and head of housing investment at Gresham House, said:
“We are delighted to agree this £16 million acquisition from Orbit, which was facilitated by the new property management team joining ReSI Capital Management, as we announced last week. The homes will follow ReSI’s best practice approach, as set out in our shared ownership customer and environmental charters.
“Rising demand, and historic undersupply, means a growing need for affordable housing, 94% of which is currently provided by not-for-profits such as Orbit. ReSI’s ability to provide these organisations with new capital supports their development of much needed new affordable homes. We look forward to working further with Orbit in the future.”
Mark Hoyland, Group Chief Executive at Orbit added: “The transfer of these shared ownership properties is part of our portfolio densification strategy, driving operational efficiencies for Orbit and supporting the delivery of more affordable new homes.
“This opportunity attracted significant market interest and we are delighted that ReSI, as a long-term owner which shares our values, was successful. As a sector leading developer of affordable homes, the proceeds of this deal will fund further much needed homes in our key operational areas, supporting both our mission to build thriving communities and to help address the critical lack of affordable housing in England.”
Residential Secure Income plc (LSE: RESI) is a real estate investment trust (REIT) listed on the premium segment of the Main Market of the London Stock Exchange with the objective of delivering secure inflation linked returns by investing in affordable shared ownership, retirement and Local Authority housing throughout the UK.
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