Residential Secure Income announces £60m investment in London shared ownership project – Residential Secure Income (RESI) has exchanged contracts to acquire 132 new build London apartments for £60mn. Located at Clapham Park, in the borough of Lambeth, the apartments will be converted into affordable shared-ownership units, utilising grant funding from the greater London authority’s homes for Londoners programme. The apartments are being purchased from Metropolitan Thames Valley Housing (MTVH), one of the UK’s largest Housing Associations, who will retain management of the Portfolio, continuing the long-term partnership between both parties.
Shared ownership niche
In July 2018, it was announced that RESI was to become the first publicly listed fund to be involved in shared ownership projects. Shared ownership allows a purchaser to buy a property with a lower deposit requirement and with lower annual costs, making the apartments more affordable and allowing individuals and families to get onto the housing ladder. The UK government has identified the shared ownership model as a key initiative allowing people to get on the housing ladder. Prospective buyers are able to acquire an initial 25% to 75% share of a new property, and pay a discounted rent on the rest, with the option to incrementally increase their ownership over time.
The portfolio, which is located between Clapham, Brixton, Streatham and Balham, forms part of MTVH’s regeneration project on the Clapham Park estate which will deliver 2,500 new homes of which 700 have already been delivered.
Kush Rawal, director of residential investment at MTVH, added: “We are delighted to have sold these private homes to RESI and to be responsible for their onward delivery as shared ownership. Clapham Park is one of the most important urban regeneration schemes and is treated as such within this key borough. As one of the largest providers of affordable housing, our continuing involvement with this vital project gives us the opportunity to provide much needed affordable housing in an area where there is high demand”
RESI’s second major shared ownership deal
This acquisition follows RESI’s first investment in shared ownership last October, when it acquired a £16.5m portfolio of 34 homes from Crest Nicholson, which is also managed by MTVH. Click here to read more about this story.
RESI: Residential Secure Income announces £60m investment in London shared ownership project