TIDMRESI
RNS Number : 0281U
Residential Secure Income PLC
31 March 2021
31 March 2021
Residential Secure Income plc
Acquisition of 191 income-generating, shared ownership homes
ReSI agreed transfer deal with Orbit, one of England's leading
housing associations
Residential Secure Income plc ("ReSI") (LSE: RESI), which
invests in affordable shared ownership, retirement and local
authority housing, has acquired 191 shared ownership homes from
Orbit, one of England's leading housing associations, for cash
consideration of GBP16 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 GBP300 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 GBP16 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.
"T his 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."
FOR FURTHER INFORMATION, PLEASE CONTACT:
ReSI Capital Management Limited / Gresham
House Housing
Ben Fry
Alex Pilato +44 (0) 20 7382 0900
Jefferies International Limited
Stuart Klein
Tom Yeadon +44 (0) 20 7029 8000
KL Communications gh@kl-communications.com
Charles Gorman +44 (0) 20 3995 6673
Camilla Esmund
Saurav Karia
Notes to Editors
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.
ReSI targets a secure, long-dated, inflation-linked dividend of
5.0 pence per share p.a. (paid quarterly) and a total return in
excess of 8.0% per annum. Including recent committed acquisitions,
ReSI's portfolio comprises 3,061 properties, with an (unaudited)
IFRS fair value of GBP345m.
ReSI aims to make a meaningful contribution to alleviating the
UK housing shortage by meeting demand from housing developers
(Housing Associations, Local Authorities and private developers)
for long-term investment partners to accelerate the development of
socially and economically beneficial new affordable housing.
ReSI's subsidiary, ReSI Housing Limited, is registered as a
for-profit Registered Provider of Social Housing, and so provides a
unique proposition to its housing developer partners, being a long
term private sector landlord within the social housing regulatory
environment. As a Registered Provider, ReSI Housing can acquire
affordable housing subject to s106 planning restrictions and
housing funded by government grant.
Acquisitions by ReSI are limited to homes with sufficient
cashflows, counterparty credit quality and property security to be
capable of supporting long -- term investment grade equivalent
debt. ReSI does not manage or operate stock and uses experienced
and credit-worthy managers.
ReSI is managed by ReSI Capital Management Limited, whose
immediate parent company, TradeRisks Limited, has been active
within the social housing sector for over 20 years as a funding
arranger and advisor and, over the last three years, as an investor
through ReSI.
ReSI Capital Management and its parent, TradeRisks, were
acquired by Gresham House plc in March 2020, further increasing the
investment expertise available to ReSI. The housing investment team
at Gresham House plc has 15 members and growing, with an average of
20 years' relevant experience, covering fund management, housing
investment, social housing management and financial and risk
expertise.
Gresham House plc is a London Stock Exchange quoted specialist
alternative asset manager committed to operating responsibly and
sustainably, taking the long view in delivering sustainable
investment solutions.
Further information on ReSI is available at
www.resi-reit.com
Further information on Gresham House plc is available at
www.greshamhouse.com
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END
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