On 17th of March 2022, James Wilmore wrote in inside housing about the 182 shared ownership homes being bought by REIT in £21m cash deal. According to him,
Residential Secure Income (ReSI), a real estate investment company (REIT), has committed to add 182 shared ownership homes to its rapidly expanding portfolio.
Gresham House’s publicly traded vehicle said today that it has agreed to buy the properties for £21 million in cash.
In the paperwork announcing the purchase, the identity of the party ReSI is purchasing the residences from was not revealed.
According to Gresham House’s annual results released this week, the REIT has £39 million worth of shared ownership deals “underway.”
The 182 residences are “completely occupied” and “mainly located” in the South East and East of England, according to ReSI, which also owns for-profit registered provider ReSI Housing.
In the filing, ReSI stated, “The homes benefit from annual uncapped retail price index-linked rent hikes, with an average outstanding lease duration of 95 years.”
According to the firm, owners typically own roughly 40% of the properties.
The properties will “produce a projected inflation-linked leveraged yield in line with ReSI plc’s 8% total return,” according to the company.
The transaction is set to close on or around April 1st.
In recent years, ReSI has made a number of agreements for joint ownership properties.
Metropolitan Thames Valley has sold it 68 houses a year ago. The REIT announced the purchase of 191 residences from Orbit the following month.
ReSI purchased 85 shared ownership homes from Croydon Council’s struggling development firm Brick by Brick, which is set to close down in January 2021.
The REIT revealed in May that it held 549 shared ownership properties, but no further acquisitions have been made public until recently.
According to Gresham House’s results, ReSI, which also invests in the independent retirement living industry, concluded a £15 million equity raise last month.
According to the results sheet, the funds, together with “existing capital resources and an ultra-long-term lending facility,” enable the REIT to fully finance deals.
The University Superannuation Scheme, one of the largest pension systems in the UK, agreed to a £300 million debt facility with ReSI in 2020.