Provider aims to double output as it eyes equity investment models
Abri Group has announced an ambition to double its development to 20,000 homes over the next decade, by using a variety of funding models including equity investment.
The 51,000-home provider, which operates across the south of England, unveiled the target in its new investment strategy published yesterday.
The group said it still intends to build at least 1,000 homes a year funded on-balance sheet and looks forward to working with Homes England, with whom it has had a strategic partnership. It said it will build homes through a 50:50 mix of land-led and section 106 delivery to “manage cashflow effectively while unlocking stalled developer-led sites.”
However, it said will now aim to increase delivery to 20,000 homes by 2036 by looking at “significant alternative financing” and a model that incorporates debt financing and equity investment.
It said: “This alternative funding strategy will, among other routes, include equity investment models in which Abri sources, develops, and manages the homes, but does not provide all the capital or hold full ownership.
“A risk-based framework will be established to evaluate and implement the most effective models for attracting institutional investment and ensure that these meet Abri’s long term ambitions for a diverse and flexible funding structure.”
The 20,000 target is double the 10,000 target the group previously set for the 10 years to 2030.
The group said it wants to become a ‘top 5 provider’ in terms of scale, customer satisfaction and as a place to work. When it comes to size, Abri is currently the 22nd largest housing association in the UK when it comes to turnover, according to Housing Today’s 50 Largest Housing Associations list. Last year it completed 788 homes.
Abri pledged to invest around £450m into improving existing homes. This is made up of £250m for essential component replacements, £70m for energy efficiency upgrades, £85m for building safety and £40m for estate improvements.
It plans to commit £161m for major regeneration projects, including the 400-home Sawyers Close scheme in Windsor.
The landlord will also create a new home and place standard to “define the minimum benchmark customers should expect.”
Rose Bean, who was announced as Abri’s chief investment officer earlier this month, said: “This strategy is all about making deliberate, long-term choices that increase our organisation’s scale and financial resilience to continue to deliver the homes and services our customers expect.
“Through our dedicated investment strategy we are committed to ensuring that our existing customers live in homes of an even higher quality; homes that are safer, more energy efficient and underpinned by a clear standard that our customers can hold us accountable to. Supported by new avenues of funding and partnerships with like-minded organisations the strategy also outlines how Abri will help tackle the shortage of housing and expand to build where the need is greatest.”
Abri operates across the South of England, including London, Devon, Oxford and the coast. It has grown through mergers in recent years, with Octavia and Silva joining the group in 2024 and 2023 respectively.
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