Residential Secure Income (ReSI) has exchanged contracts to acquire 132 new build apartments located at Clapham Park, in the London Borough of Lambeth, for a total of €69.8m (£60m). The vendor, Metropolitan Thames Valley Housing (MTVH), one of the UK’s largest Housing Associations, will retain management of the portfolio, continuing the long term partnership between both parties.
The properties, which are 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, a community hub, a new community centre and new shops. The acquisition will enable MTVH to recycle the proceeds into further developments thus supporting MTVH in the delivery of new homes.
ReSI intends to convert the 1, 2 and 3 bedroom apartments into Shared Ownership homes, utilising grant funding from the Greater London Authority’s Homes for Londoners programme. 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.
Ben Fry of ReSI Capital Management Ltd, ReSI's fund manager, said: “This is a further example of how ReSI is able to contribute positively to the delivery of affordable housing in the UK and demonstrates our ability to acquire Shared Ownership portfolios through partnerships with Housing Associations. ReSI has now developed an exciting pipeline of Shared Ownership housing with a range of institutional partners, including Crest Nicolson, Morgan Sindall and MTVH.”
Kush Rawal, Director of Residential Investment at Metropolitan Thames Valley, 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.”