Business
ReSI ACQUIRES PROPERTIES FOR SHARED OWNERSHIP USE
ReSI ACQUIRES PROPERTIES FOR SHARED OWNERSHIP USE.
About this update from Residential Secure Income Plc
[{"type":"text","content":"\n \nRNS Number : 1686F Residential Secure Income PLC 25 October 2018 \n\n25 October 2018\n \nReSI ACQUIRES 34 NEW BUILD PROPERTIES FOR USE AS SHARED OWNERSHIP\n FOR £16.45 MILLION\n \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 it has exchanged contracts to acquire 34 new build homes (\"the Properties\") located in the London Borough of Barnet, which it intends, using government grant funding, to convert into Shared Ownership homes. \n \nThe Properties are being purchased from housebuilder Crest Nicholson for a total consideration of £16.45 million and form part of Crest Nicholson's Totteridge Place development, a collection of 124 contemporary houses and apartments on Whetstone High Road. ReSI will hold the Properties through its wholly owned subsidiary ReSI Housing Limited (\"ReSI Housing\"), which is regulated as a for-profit Registered Provider of social housing and expects to complete on the majority of the acquisitions by the end of October. Metropolitan Thames Valley Housing, one of the largest housing associations and a recognised leader in Shared Ownership, will act as managing agent for the Properties. \n \nThe mix of one, two and three bedroom properties, held by ReSI on a long-leasehold basis of 250 years, will be converted into Shared Ownership units which allow a wider range of first time buyers to get onto the housing ladder. \n \nThe acquisition will be leveraged post acquisition with long-dated investment grade equivalent debt secured against the portfolio. \n \nReSI intends to grow its portfolio of Shared Ownership properties through further acquisitions from developers and housebuilders (both private and housing associations), utilising government grant funding.\n \nDavid Orr, non-executive chairman of ReSI Housing, said: \"We are excited that ReSI Housing is combining private sector equity with grant funding to enable the provision of further shared ownership homes, allowing new buyers to take their first steps onto the housing ladder. This transaction shows how those for-profit providers that are long-term asset holders can make a positive contribution to the social housing sector, by enabling developers to accelerate th...