Purchase designed to support 1,000-home development programme by Cornwall-based Ocean Housing
Gresham House has acquired 469 shared ownership properties from a small housing association in Cornwall.
The fund manager’s for-profit provider ReSI Homes agreed the £46m deal with Ocean Housing as part of Gresham House’s £1.4bn plan to invest in affordable housing and build to rent, and will provide funds for a 1,000-home development programme being undertaken by Ocean.
The homes are now owned by ReSI but they will be managed by 4,800-home landlord Ocean Housing under a 20-year management agreement.
Gresham House has now invested in 2,100 shared ownership properties.
Its model involves its for-profit providers ReSI Homes and ReSI Housing buying stock off established housing associations, who then continue to manage the homes through management contracts.
The housing associations selling the stock benefit from receiving the funds which they can reinvest in development or improving existing homes.
Ben Fry, managing director of housing at Gresham House said: “This deal is a great result for all stakeholders and will deliver substantial social benefits for Cornwall, unlocking considerable capacity for Ocean Housing to deliver further affordable housing in an area where it is sorely needed.”
Mark Gardner, group chief executive at Ocean Housing, said: “This transaction will play a vital role in supporting our plans to build 1,000 new homes in Cornwall by 2030 and invest in improving energy efficiency and reducing emissions in our existing tenants’ homes.”
Last year Gresham House announced plans to double its investment in managed assets from £700m to £1.4bn within three years.
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Gresham House has now invested in more than 2,100 shared ownership homes across ReSI LP and its listed investment trust counterpart, Residential Secure Income plc (LSE: RESI).
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