Business
£13 MILLION ACQUISITION OF LOCAL AUTHORITY HOUSING
£13 MILLION ACQUISITION OF LOCAL AUTHORITY HOUSING.
About this update from Residential Secure Income Plc
[{"type":"text","content":"\n \nRNS Number : 6582U Residential Secure Income PLC 16 July 2018 \n\n16 July 2018\nResidential Secure Income plc\n£13 MILLION ACQUISITION OF LOCAL AUTHORITY HOUSING\nResidential Secure Income plc (\"ReSI\") (LSE: RESI), which invests in residential asset classes that comprise the stock of UK social housing providers, is pleased to announce the acquisition of four freehold residential buildings in Luton for a total consideration of £13.0 million. The buildings benefit from a 9.2 year lease to the local authority (with an option for the local authority to extend by 10 years) and are used to provide housing under the local authority's statutory obligations, as well as back to work and support services to tenants. The buildings are operated by Mears, a leading provider of property and support services, and will immediately be income producing to ReSI.\nThe buildings have recently undergone a full refurbishment, completed in 2017, and contain 155 residential units. This is ReSI's second acquisition in Luton, where ReSI is looking to be a long term partner of the local authority in providing affordable accommodation for its constituents. Luton, along with many areas across the UK and especially in south-east England, has a critical shortage of both affordable and market housing. \nMears is responsible for repairs to the flats and providing the support services, with the local authority bearing the letting risk. ReSI intends to leverage the acquisition with investment grade equivalent debt secured on the building to deliver equity returns at least in line with ReSI's total return target.\nFollowing this acquisition ReSI has now invested £168 million of the proceeds raised at IPO in assembling a portfolio which comprises 1,928 residential units. \nBen Fry of ReSI Capital Management Ltd, ReSI's fund manager, said: \"We continue to identify and acquire good quality and modern assets that offer a highly visible and long-term income stream, leveraging our sector and market knowledge as well as track record with local authorities.\" \n-End-\nFOR FURTHER INFORMATION, PLEASE CONTACT: \n\n\n\n\nReSI Capital Management Limited\nJonathan Slater\nBen Fry\nAlex Pilato\nMark Rogers\nPete Redman\n\n\n+44 (0) 20 7382 0900\n\n\n\n\n\n\n\n\n\n\n\n\nJefferies International Limited \nStuart Klein\nGary Gould\n\n\n+44 (0) 20 7029 8000\n\...