New shared ownership property mgmt arrangements
9 December 2021
Residential Secure Income plc
Long-term arrangements for the part of shared ownership portfolio not externally managed
Residential Secure Income plc ("ReSI") (LSE: RESI) is pleased to announce that is has entered into new real estate management arrangements with a subsidiary of its Investment Manager, ReSI Capital Management Limited (the "Investment Manager" and, together with its subsidiaries, the "Investment Manager Group"), covering property and estate management services for part of ReSI's shared ownership portfolio.
ReSI has contracted on terms consistent with the third-party arrangements that currently service ReSI's shared ownership portfolio save that ReSI will benefit from more competitive pricing with the Investment Manager Group providing these services at cost, as is the case with the services for the retirement housing portfolio, with no profit arising to the Investment Manager Group from these arrangements and a maximum net cost of 4% of rents.
ReSI Property Management Limited, a subsidiary of the Investment Manager acquired the team of established third-party property management services provider, Girlings, in July 2021 and has extensive real estate management experience. ReSI will continue to work with external managers where this is beneficial.
The Investment Manager is a related party of ReSI under Chapter 11 of the FCA's Listing Rules and therefore the additional services to be provided constitute a smaller related party transaction under Listing Rule 11.1.10.
For further information, please contact:
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ReSI Capital Management Limited / TradeRisks Limited Ben Fry Alex Pilato |
+44 (0) 20 7382 0900
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Jefferies International Limited Stuart Klein Tom Yeadon
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+44 (0) 20 7029 8000 |
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KL Communications Charles Gorman Will Sanderson Millie Steyn
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+44 (0) 20 3995 6673
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About Residential Secure Income plc
Residential Secure Income plc (LSE: RESI) is a real estate investment trust (REIT) focused on delivering secure, inflation-linked returns with a focus on two resident sub-sectors in UK residential - independent retirement rentals and shared ownership - underpinned by an ageing demographic and untapped and strong demand for affordable home ownership.
ReSI targets a secure, long-dated, inflation-linked dividend of 5.0 pence per share p.a. (paid quarterly) and a total return in excess of 8.0% per annum. Including recently committed acquisitions, ReSI's portfolio comprises 3,051 properties, with an (unaudited) IFRS fair value as at 30 September 2021 of £351m[i].
ReSI's purpose is to deliver affordable, high quality, safe homes with great customer service and long-term stability of tenure for residents. We achieve this through meeting demand from housing developers (housing associations, local authorities and private developers for long-term investment partners to accelerate the development of socially and economically beneficial affordable housing.
ReSI's subsidiary, ReSI Housing Limited, is registered as a for-profit Registered Provider of social housing, and so provides a unique proposition to its housing developer partners, being a long-term private sector landlord within the social housing regulatory environment. As a Registered Provider, ReSI Housing can acquire affordable housing subject to s106 planning restrictions and housing funded by government grant.
Acquisitions by ReSI are limited to homes with sufficient cashflows, counterparty credit quality and property security to be capable of supporting long‑term investment grade equivalent debt. ReSI does not manage or operate stock and uses experienced and credit-worthy managers.
ReSI is managed by ReSI Capital Management Limited, whose immediate parent company, TradeRisks Limited, has been active within the social housing sector for over 20 years as a funding arranger and advisor and, over the last four years, as an investor through ReSI.
ReSI Capital Management and its parent, TradeRisks, were acquired by Gresham House in March 2020, further increasing the investment expertise available to ReSI. The housing investment team at Gresham House has 19 members and growing, with an average of 18 years' relevant experience, covering fund management, housing investment, social housing management and financial and risk expertise.
Gresham House plc is a London Stock Exchange quoted specialist alternative asset manager committed to operating responsibly and sustainably, taking the long view in delivering sustainable investment solutions.
Further information on ReSI is available at www.resi-reit.com , and further information on Gresham House is available at www.greshamhouse.com
[i] excluding the finance lease gross up and including committed acquisitions
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