£50mn partnership with HSPG

RNS Number : 3489Z

Residential Secure Income PLC

14 September 2022

 

14 September 2022

Residential Secure Income plc

("ReSI plc" or the "Company")

£50mn partnership with HSPG

Residential Secure Income plc (ReSI plc) (LSE: RESI), which invests in independent retirement living and shared ownership to deliver secure, inflation-linked returns , is pleased to announce a partnership with social impact real estate firm HSPG.

Under the agreement, ReSI plc has the exclusive option to acquire HSPG's entire pipeline of shared ownership properties on a tranched basis, following completion of the homes, whilst HSPG will be responsible for letting to shared owners. ReSI plc's expects to acquire at least £50mn of properties as part of the deal over the next three years.

The first transaction under the partnership has now been completed, with ReSI plc acquiring 21 completed homes at the Laureate Fields development in Felixstowe, Suffolk, for £2.7mn. The homes are part of a larger 197-unit masterplan development and comprise a mix of detached, semi-detached, and terraced two storey houses, developed by Generator Group. This latest acquisition brings ReSI plc's shared ownership portfolio to 725 homes, and a further 59 committed homes.

Ben Fry, Managing Director of Housing at Gresham House, said:

"The Laureate Fields acquisition will be the first of several investments under this partnership with HSPG, and we look forward to announcing more transactions with them in the future.

The transaction will add further inflation-linked, income-generating assets, whilst helping to bring forward much needed affordable housing,"

Guy Horne, chief executive at HSPG, added:

"Gresham House is a natural partner for HSPG, and we are delighted to have secured this deal with one of the UK's most respected affordable housing investors. As we continue to grow our presence in the competitive UK property development market, this funding provides further confidence that we will be able to deliver socially impactful housing for communities up and down the country."

ENDS

For further information, please contact:

Gresham House Real Estate Ben Fry Brandon Holloway	[phone]
Peel Hunt LLP Luke Simpson Huw Jeremy	[phone]
KL Communications Charles Gorman Charlotte Francis Millie Steyn	[e-mail] [phone]

About ReSI plc

Residential Secure Income plc ("ReSI plc" LSE: RESI) is a real estate investment trust (REIT) focused on delivering secure, inflation-linked returns with a focus on two resident sub-sectors in UK residential - independent retirement rentals and shared ownership - underpinned by an ageing demographic and untapped and strong demand for affordable home ownership.

ReSI plc targets a secure, long-dated, inflation-linked dividend of 5.16 p per share FY 2022ⁱ. (paid quarterly) and a total return in excess of 8.0% per annum. As at 30 June 2022, including committed acquisitions, ReSI plc's portfolio comprises 3,291 properties, with an (unaudited) IFRS fair value of £389mnⁱⁱ.

ReSI plc's purpose is to deliver affordable, high-quality, safe homes with great customer service and long-term stability of tenure for residents. We achieve this through 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 affordable housing.

ReSI plc'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.

About Gresham House and Gresham House Real Estate

Gresham House 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.

Gresham House Real Estate has an unparalleled track record in the affordable housing sector over 20 years, with senior members having an average of c.30 years' experience.

Gresham House Real Estate offers long-term equity investments into UK housing, through listed and unlisted housing investment vehicles, each focused on addressing different areas of the affordable housing problem. Each fund aims to deliver stable and secure inflation-linked returns whilst providing social and environmental benefits to its residents, the local community, and the wider economy.

Further information on ReSI plc is available at www.resi-reit.com , and further information on Gresham House is available at www.greshamhouse.com

^i. The dividend target and total return target are targets only and are not profit forecasts. There can be no assurance that either target will be met, and they should not be taken as an indication of the Company's future results.

^ii. excluding the finance lease gross up and including £15mn of committed acquisitions

 

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