REG - Residential Secure - New shared ownership property mgmt arrangements

Jefferies FinancialAnnouncement

09/12/2021 08:05

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RNS Number : 0497V  Residential Secure Income PLC  09 December 2021

9 December 2021

Residential Secure Income plc

Long-term arrangements for the part of shared ownership portfolio not
externally managed

Residential Secure Income plc ("ReSI") (LSE: RESI) is pleased to announce that
is has entered into new real estate management arrangements with a subsidiary
of its Investment Manager, ReSI Capital Management Limited (the "Investment
Manager" and, together with its subsidiaries, the "Investment Manager Group"),
covering property and estate management services for part of ReSI's shared
ownership portfolio.

 

ReSI has contracted on terms consistent with the third-party arrangements that
currently service ReSI's shared ownership portfolio save that ReSI will
benefit from more competitive pricing with the Investment Manager Group
providing these services at cost, as is the case with the services for the
retirement housing portfolio, with no profit arising to the Investment Manager
Group from these arrangements and a maximum net cost of 4% of rents.

 

ReSI Property Management Limited, a subsidiary of the Investment Manager
acquired the team of established third-party property management services
provider, Girlings, in July 2021 and has extensive real estate management
experience. ReSI will continue to work with external managers where this is
beneficial.

 

The Investment Manager is a related party of ReSI under Chapter 11 of the
FCA's Listing Rules and therefore the additional services to be provided
constitute a smaller related party transaction under Listing Rule 11.1.10.

 

 

For further information, please contact:

 

 ReSI Capital Management Limited / TradeRisks Limited  +44 (0) 20 7382 0900

 Ben Fry

 Alex Pilato
 Jefferies International Limited                       +44 (0) 20 7029 8000

 Stuart Klein

 Tom Yeadon

 KL Communications                                     gh@kl-communications.com (mailto:gh@kl-communications.com)

 Charles Gorman                                        +44 (0) 20 3995 6673

 Will Sanderson

 Millie Steyn

 

About Residential Secure Income plc

 

Residential Secure Income plc (LSE: RESI) is a real estate investment trust
(REIT) focused on delivering secure, inflation-linked returns with a focus on
two resident sub-sectors in UK residential - independent retirement rentals
and shared ownership - underpinned by an ageing demographic and untapped and
strong demand for affordable home ownership.

 

ReSI targets a secure, long-dated, inflation-linked dividend of 5.0 pence per
share p.a. (paid quarterly) and a total return in excess of 8.0% per annum.
Including recently committed acquisitions, ReSI's portfolio comprises 3,051
properties, with an (unaudited) IFRS fair value as at 30 September 2021 of
£351m(( i )).

 

ReSI's purpose is to deliver affordable, high quality, safe homes with great
customer service and long-term stability of tenure for residents. We achieve
this through meeting demand from housing developers (housing associations,
local authorities and private developers for long-term investment partners to
accelerate the development of socially and economically beneficial affordable
housing.

 

ReSI's subsidiary, ReSI Housing Limited, is registered as a for-profit
Registered Provider of social housing, and so provides a unique proposition to
its housing developer partners, being a long-term private sector landlord
within the social housing regulatory environment. As a Registered Provider,
ReSI Housing can acquire affordable housing subject to s106 planning
restrictions and housing funded by government grant.

 

Acquisitions by ReSI are limited to homes with sufficient cashflows,
counterparty credit quality and property security to be capable of supporting
long‑term investment grade equivalent debt. ReSI does not manage or operate
stock and uses experienced and credit-worthy managers.

 

ReSI is managed by ReSI Capital Management Limited, whose immediate parent
company, TradeRisks Limited, has been active within the social housing sector
for over 20 years as a funding arranger and advisor and, over the last four
years, as an investor through ReSI.

 

ReSI Capital Management and its parent, TradeRisks, were acquired by Gresham
House in March 2020, further increasing the investment expertise available to
ReSI. The housing investment team at Gresham House has 19 members and growing,
with an average of 18 years' relevant experience, covering fund management,
housing investment, social housing management and financial and risk
expertise.

 

Gresham House plc is a London Stock Exchange quoted specialist alternative
asset manager committed to operating responsibly and sustainably, taking the
long view in delivering sustainable investment solutions.

 

Further information on ReSI is available at www.resi-reit.com
(http://www.resi-reit.com/) , and further information on Gresham House is
available at www.greshamhouse.com (http://www.greshamhouse.com)

 

 

 i  excluding the finance lease gross up and including committed acquisitions

 

 

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