Park Properties Housing Association has identified around 4,000 homes to add to its portfolio
Global investment giant Sixth Street has announced a plan to invest £1bn in a for-profit registered provider in partnership with investor HPSG.
Sixth Street is investing in for-profit provider Park Properties Housing Association (PPHA). It will provide the majority of the equity capital, with HSPG, which bought PPHA in 2020, will lead the “strategic direction, asset management and growth of PPHA’s platform”.
Sixth Street, which is based in San Francisco and manages more than £100bn of assets globally, said the investment means PPHA intends to invest £1bn in delivering homes for affordable tenures. These include homes for affordable rent, social rent, shared ownership, and “grant-led additionality”.
PPHA has delivered more than 2,000 homes since 2020. It acquires section 106 properties from large housebuilders and SME developers.
It has been focused on the south east and west midlands, but Sixth Street said the new investment will help it expand its activity nationwide. PPHA has a contracted pipeline of around 1,100 homes and a further 4,000 new homes identified for addition to its growing portfolio
Giulio Passanisi, partner and head of European Real Estate at Sixth Street, said: “This investment marks a significant expansion of Sixth Street’s ongoing commitment to the UK residential market and aligns with our long-dated, patient capital investment model.
Guy Horne, chief executive of HSPG, said: “This partnership marks a significant step in scaling PPHA as a leading platform for affordable housing delivery.
“Institutional capital, deployed through for-profit registered providers such as PPHA, is playing an increasingly important role in addressing the imbalance of affordable homes in the UK. Through PPHA, we are building a scaled platform to deliver high-quality affordable homes, with a clear focus on service delivery, customer outcomes and long-term performance.”
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