High Impact Housing Investment in Savills SAH Fund

Schroder BSC Social Impact Trust

04 April 2024

 

Schroder BSC Social Impact Trust plc

High Impact Housing Investment in Savills Simply Affordable Housing Fund

The Board of Schroder BSC Social Impact Trust plc (the "Company"), which provides a unique investment opportunity to address UK social challenges, is pleased to announce a £5 million commitment to Savills IM Simply Affordable Homes Limited Partnership (the "Fund" or "SAH"), which will lie within our High Impact Housing asset class allocation.

The Fund will be delivered by the experienced investment management firm Savills Investment Management, who has a proven track record in managing over £22.1 billion of real estate assets, of which more than £1.5 billion are residential real estate. The fund management team and the Fund's established For-Profit Registered Provider board has a strong track record in delivering social and affordable housing and will bring a wealth of experience to the Fund through their significant sector expertise and close relationships with Housing Associations, as well as by leveraging Savills Investment Management's platform.

The Fund is focused on delivering affordable homes across the UK, by using its established strategic partnerships with high quality Housing Associations, developers, and housebuilders, through a mix of acquiring existing stock and delivering new build homes. The Fund will invest in and manage a diversified portfolio of affordable housing, comprising both affordable and social-rent homes as well as shared-ownership homes, generating government-backed and inflation-linked income streams.

The Fund aims to deliver strong impact in line with the Company's Impact Thesis and Theory of Change: properties will be affordable rented (20% or higher discount to market rates), social-rent or shared ownership homes, with a focus on areas with high local authority waiting lists and areas ranked within the lowest 40% in the Index of Multiple Deprivation. Furthermore, the Fund operates under enhanced governance frameworks and a sustainable investment strategy, targeting high environmental standards and progressing towards Net Zero Carbon by 2040.

Commenting on the SAH Investment, Jeremy Rogers, CIO of Big Society Capital, Portfolio Manager, Schroder BSC Social Impact Trust plc, said:

"The UK continues to face a housing crisis with an acute lack of social and affordable housing and this fund will deliver homes for lower income households and people currently in need of social housing in areas in most need. The SAH management team have a strong track record, with over 30 years' expertise and deep sector knowledge with long standing housing association relationship. We believe they are well-placed to deliver high quality financial and impact returns through providing affordable housing at-scale."

For further information, please contact:

Schroders Augustine Chipungu (Press) Schroder Investment Management Limited, Company Secretary	0207 658 2016 0207 658 6000
Big Society Capital Emma Hickinbotham, Managing Director, Communications	[e-mail]
Winterflood Securities Limited Neil Langford	020 3100 0000

 

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