ReSI Capital Management has entered into a new Housing Investment Partnership agreement (HIP) with Morgan Sindall Investments (MSI). 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. HIP creates an exclusive arrangement between RCM and MSI to provide access to a pipeline of institutional quality residential investment opportunities for its long term capital by utilising the market-leading expertise in social infrastructure and housing development of MSI and its other partners. HIP will initially target the delivery of 1,500 shared ownership homes with a value of up to €340m (£300m).
ReSI made its first investment in shared ownership residential in October 2018, when it acquired a€18.7m (£16.5m) portfolio of 34 homes from Crest Nicholson, having last July become the first publicly listed investment fund, through its subsidiary ReSI Housing, to become a Registered Provider with the Regulator of Social Housing. Having fully invested the proceeds of its IPO, ReSI intends to invest through HIP using proceeds from investment-grade debt secured against the wider €272m (£240m) residential portfolio of c. 2,500 mixed tenure homes ReSI has built up since listing in July 2017.
Lisa Scenna, Managing Director Morgan Sindall Investments said: “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”.
Jonathan Slater, Chief Executive of ReSI Capital Management, 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, and further emphasises our ability to work with leading housing partners.”
