Residential Secure Income partners with Morgan Sindall – Residential Secure Income’s manager has entered into a new Housing Investment Partnership (HIP) agreement with Morgan Sindall Investments Limited. The agreement aims to increase the supply of shared ownership homes, enabling more first time buyers in the UK to establish themselves on the housing ladder.
The agreement creates an exclusive arrangement to provide access to a pipeline of institutional quality residential investment opportunities for ReSI. Initially, they will target the delivery of 1,500 shared ownership homes with a value of up to GBP300 million.
ReSI made its first investment in shared ownership residential in October 2018, when it acquired a GBP16.5 million portfolio of 34 homes from Crest Nicholson. Last July, it became the first publicly listed investment fund to become a Registered Provider with the Regulator of Social Housing.
Having fully invested the proceeds of its IPO, ReSI intends to use the proceeds from investment grade debt secured against the wider GBP240 million residential portfolio of c. 2,500 mixed tenure homes ReSI has built up since listing in July 2017.
The UK Government has identified the shared ownership model as a key initiative allowing single people, couples and families to get on the housing ladder. Prospective buyers are able to acquire an initial 25% to 75% share of a new property, and pay rent on the rest, with the option to incrementally increase their ownership over time.
Lisa Scenna, managing director of Morgan Sindall Investments said: “HIP highlights Morgan Sindall Investments’s strong investment credentials and our ability to deploy large volumes of institutional capital into the residential market across our regeneration pipeline. Our partners will benefit from this initiative as HIP will significantly lower the barriers to home ownership and will benefit people who live in the communities where we work“.
Jonathan Slater, chief executive of ReSI’s fund manager, said: “This new partnership with Morgan Sindall Investments, part of one of the UK’s leading construction and regeneration groups, is a further extension of our strategy to facilitate the much needed supply of new homes in the UK and enable more first time buyers to get a foot on the housing ladder through shared ownership, while at the same time delivering a secure, long term income stream to shareholders. This new agreement ensures a strong pipeline of units for ReSI to continue its investment programme in shared ownership through ReSI’s registered provider of social housing, ReSI Housing Ltd, and further emphasises our ability to work with leading housing partners.”
RESI : Residential Secure Income partners with Morgan Sindall