REG - Residential Secure - £50mn partnership with HSPG

Kenedix Residential Next InvestmentAnnouncement

14/09/2022 08:15

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RNS Number : 3489Z  Residential Secure Income PLC  14 September 2022

14 September 2022

 

 

Residential Secure Income plc

("ReSI plc" or the "Company")

 

£50mn partnership with HSPG

 

 

Residential Secure Income plc (ReSI plc) (LSE: RESI), which invests in
independent retirement living and shared ownership to deliver secure,
inflation-linked returns, is pleased to announce a partnership with social
impact real estate firm HSPG.

 

Under the agreement, ReSI plc has the exclusive option to acquire HSPG's
entire pipeline of shared ownership properties on a tranched basis, following
completion of the homes, whilst HSPG will be responsible for letting to shared
owners. ReSI plc's expects to acquire at least £50mn of properties as part of
the deal over the next three years.

 

The first transaction under the partnership has now been completed, with ReSI
plc acquiring 21 completed homes at the Laureate Fields development in
Felixstowe, Suffolk, for £2.7mn. The homes are part of a larger 197-unit
masterplan development and comprise a mix of detached, semi-detached, and
terraced two storey houses, developed by Generator Group. This latest
acquisition brings ReSI plc's shared ownership portfolio to 725 homes, and a
further 59 committed homes.

 

Ben Fry, Managing Director of Housing at Gresham House, said:

"The Laureate Fields acquisition will be the first of several investments
under this partnership with HSPG, and we look forward to announcing more
transactions with them in the future.

 

The transaction will add further inflation-linked, income-generating assets,
whilst helping to bring forward much needed affordable housing,"

 

Guy Horne, chief executive at HSPG, added:

"Gresham House is a natural partner for HSPG, and we are delighted to have
secured this deal with one of the UK's most respected affordable housing
investors. As we continue to grow our presence in the competitive UK property
development market, this funding provides further confidence that we will be
able to deliver socially impactful housing for communities up and down the
country."

 

 

ENDS

 

 

For further information, please contact:

 

 Gresham House Real Estate

 Ben Fry                    +44 (0) 20 7382 0900

 Brandon Holloway

 Peel Hunt LLP

 Luke Simpson               +44 (0) 20 7418 8900

 Huw Jeremy

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

 Charles Gorman             +44 (0) 20 3995 6673

 Charlotte Francis

 Millie Steyn

 

 

 

About ReSI plc

 

Residential Secure Income plc ("ReSI 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 plc targets a secure, long-dated, inflation-linked dividend of 5.16 p per
share FY 2022(i). (paid quarterly) and a total return in excess of 8.0% per
annum. As at 30 June 2022, including committed acquisitions, ReSI plc's
portfolio comprises 3,291 properties, with an (unaudited) IFRS fair value of
£389mn(ii).

 

ReSI plc'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 plc'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.

 

 

About Gresham House and Gresham House Real Estate

 

Gresham House 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.

 

Gresham House Real Estate has an unparalleled track record in the affordable
housing sector over 20 years, with senior members having an average of c.30
years' experience.

 

Gresham House Real Estate offers long-term equity investments into UK housing,
through listed and unlisted housing investment vehicles, each focused on
addressing different areas of the affordable housing problem. Each fund aims
to deliver stable and secure inflation-linked returns whilst providing social
and environmental benefits to its residents, the local community, and the
wider economy.

 

Further information on ReSI plc 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.) The dividend target and total return target are targets only and are not
profit forecasts. There can be no assurance that either target will be met,
and they should not be taken as an indication of the Company's future results.

 

(ii.) excluding the finance lease gross up and including £15mn of committed
acquisitions

 

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