ReSI makes £6.5m retirement homes acquisition
19 October 2018
Residential Secure Income plc
ReSI grows retirement home portfolio with £6.5 million acquisition
Residential Secure Income plc ("ReSI") (LSE: RESI), which invests in residential asset classes that comprise the stock of UK social housing providers, announces that it has completed the acquisition of a 39-unit Leased Rental Homes portfolio ("the Portfolio") for a total consideration of £6.5 million.
Immediately income producing, the Portfolio is subject to fully repairing and insuring leases, which will deliver an upwards-only market linked rental stream. The Portfolio is leased to the freeholder of the relevant retirement block and used to house the property managers under the terms of the headlease obligations.
The 39 units are located across England and Wales and comprise of two bedroom, modern flats. The properties are held on a long leasehold basis, with a weighted average unexpired lease term of 114 years. The Portfolio, which overlaps with ReSI's existing portfolio of 2,123 retirement units, offers independent living and does not include the provision of care services.
The acquisition is being funded from cash resources and will be leveraged shortly after acquisition with long-dated investment grade equivalent debt secured on the Portfolio which will deliver equity returns in excess of ReSI's total return target.
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FOR FURTHER INFORMATION, PLEASE CONTACT:
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ReSI Capital Management Limited / TradeRisks Limited Ben Fry Jonathan Slater Mark Rogers Alex Pilato |
+44 (0) 20 7382 0900
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Jefferies International Limited Stuart Klein Gary Gould |
+44 (0) 20 7029 8000 |
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FTI Consulting Richard Sunderland Claire Turvey Richard Gotla |
+44 (0) 20 3727 1000 Email: resi@fticonsulting.com |
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About Residential Secure Income plc
Residential Secure Income plc (LSE: RESI) is listed on the premium segment of the Official List of the UK Listing Authority and was admitted to trading on the Main Market of the London Stock Exchange in July 2017.
ReSI has been established to invest in portfolios of Homes across residential asset classes that comprise the stock of Housing Associations and Local Authorities, comprising Shared Ownership Homes and Rental Homes (being Market Rental Homes, Functional Homes and Sub-Market Rental Homes) throughout the UK. To date it has deployed c. £222 million, acquiring a portfolio of 2,453 properties, comprising a mixture of local authority and retirement housing.
ReSI is managed by ReSI Capital Management Limited, a wholly owned subsidiary of TradeRisks Limited which has a 17 year track record of executing transactions within the UK social housing sector and, to date, has arranged funding of over £10 billion in the social housing, care and other specialist residential property sectors.
ReSI seeks to deliver secure, long-dated, inflation-linked income returns through investment in UK social housing. It aims to meet demand from Housing Associations and Local Authorities for alternative equity-like financing sources that allows them to recycle capital back into socially and economically beneficial new housing, making a meaningful contribution to the UK housing shortage.
Homes acquired by ReSI will predominantly be on a freehold or long leasehold basis (typically 99 years or more to maturity) and benefit from long term (typically 20 years plus) inflation-adjusted cash flows. Acquisitions by ReSI will be limited to Homes with sufficient cashflows, counterparty credit quality and property security that allow the Fund Manager to arrange long-term investment grade equivalent debt.
Further information on ReSI is available at www.resi-reit.com
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