ReSI inks €340m UK housing initiative with Morgan Sindall

Residential Secure Income, an investor in UK social housing providers, has entered into an investment partnership with regeneration specialists Morgan Sindall Investments Limited (MSI) aimed at increasing the supply of shared ownership homes across the country.

Its fund manager ReSI Capital Management (RCM) inked the Housing Investment Partnership agreement (HIP) with MSI. The initiative will create a pipeline of residential investments for long term capital strategies. HIP will initially target the delivery of 1,500 shared ownership homes with a value of up to £300 mln (€340 mln).

In July 2018, ReSI become the first publicly listed investment fund, through its subsidiary ReSI Housing, to be a registered provider with the UK regulator of social housing.

ReSI made its first investment in shared ownership residential in October 2018, when it acquired a £16.5 mln portfolio of 34 homes from Crest Nicholson.

Having fully invested the proceeds of its IPO, ReSI intends to invest through HIP using debt secured against the wider £240 mln residential portfolio of 2,500 homes ReSI has built up since listing in July 2017.

'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,' said Jonathan Slater, chief executive of RCM.

Prospective buyers in the UK's state-backed shared ownership scheme 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.

'HIP highlights MSI’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 homeownership and will benefit people who live in the communities where we work,' concluded Lisa Scenna, managing director Morgan Sindall Investments.


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