Residential Secure Income (“ReSI”) has completed its first acquisition with the purchase of a rental homes portfolio comprising 1,341 retirement properties for a total consideration of approximately €112.29m (£100m).
The UK-wide portfolio is concentrated in Southern England and comprises long-leasehold or freehold interests in primarily one and two-bedroom modern, warden-assisted flats spread over more than 250 purpose-built retirement housing blocks. The portfolio provides RPI-linked assured tenancies to retirement-aged residents, offering lifetime security of tenure. Places for People group is responsible for day-to-day management, rent collection and maintenance of the portfolio.
The portfolio is immediately income producing allowing ReSI to achieve its stated intention of declaring its first dividend for the period ending 31 December 2017. The acquisition will also enable ReSI to enter the REIT regime.
Ben Fry, Investment Manager of ReSI Capital Management Limited, commented: “We are delighted to have completed our first investment with the acquisition of such a strong portfolio of properties serving the retirement sector, an important and growing segment of demand. The portfolio is operated by one of the leading social housing providers in the Places for People group and furthers our ambition to become the leading capital partner to social housing providers. We will now continue to progress the execution of our €280.7m (£250m) pipeline and remain excited by the scale of opportunities available across the sector.”
