Residential Secure completes first acquisition

Josh White WebFG News | 24 Nov, 2017 12:40 - Updated: 12:39 | | |

cash money sterling pound

Residential Secure Income

99.87

08:20 14/12/17
0.00%
0.00
  • 3,009.91
  • 0.21%6.24
  • Max: 3,011.84
  • Min: 3,000.91
  • Volume: 0
  • MM 200 : n/a
08:25 14/12/17
  • n/a
  • n/an/a
  • Max: n/a
  • Min: n/a
  • Volume: n/a
  • MM 200 : n/a
n/a

Residential asset class investor Residential Secure Income announced the completion of its first acquisition on Friday, with the purchase of a rental homes portfolio comprising 1,341 retirement properties for a total consideration of approximately £100m.

The firm said the UK-wide portfolio was concentrated in Southern England, and comprised long-leasehold or freehold interests in primarily one and two bedroom “modern, warden-assisted flats” spread over more than 250 purpose-built retirement housing blocks.

It said the portfolio provided RPI-linked assured tenancies to retirement-aged residents, offering lifetime security of tenure.

The portfolio was operated by the Places for People group, which is responsible for day-to-day management, rent collection and maintenance of the portfolio.

Residential Secure said its fund manager, ReSI Capital Management, has received a number of offers from institutional funders for long-dated investment grade equivalent debt - secured on the portfolio - which would deliver equity returns in excess of ReSI's total return target.

The fund manager was working to complete the debt transaction with its preferred funder.

It added that the fund manager had also identified a number of asset management opportunities to make operational improvements within the portfolio, which had the potential to enhance returns.

The Portfolio was immediately income-producing, the board said, allowing ReSI to achieve its stated intention of declaring its first dividend for the period to 31 December, adding that the acquisition would enable ReSI to enter the REIT regime.

The fund manager was continuing to progress the execution of around £250m of shared ownership transactions, which were now expected to be contracted in early 2018.

ReSI said that as a result, it expected that the net proceeds of the IPO, plus leverage, would be fully-deployed within the nine-month period referred to in its IPO prospectus.

“We are delighted to have completed our first investment with the acquisition of such a strong portfolio of properties serving the retirement sector, an important and growing segment of demand,” said ReSI Capital Management investment manager Ben Fry.

“The portfolio is operated by one of the leading social housing providers in the Places for People group, and furthers our ambition to become the leading capital partner to social housing providers.

“We will now continue to progress the execution of our £250m pipeline and remain excited by the scale of opportunities available across the sector.”

More news

08:09 Grainger picked for large Lewisham Council development

Lewisham Council has announced that Grainger has been selected as the preferred bidder for a partnership to develop and own 232 new purpose-built private rented homes, and provide a new ethical rental offer to Lewisham residents including long-term, family-friendly tenancies, Grainger announced on Thursday.

08:08 PZ Cussons warns over half-year operating profit

Imperial Leather and Original Source owner PZ Cussons warned on Thursday that first-half operating profits will be around 10% lower than the previous period due to reduced margins in some business units in Europe and Africa.

08:04 Polymetal takes top spot in major sustainability rankings

Polymetal International was celebrating on Thursday, after it was awarded the top rating in environmental responsibility among Russian metals and mining companies.

08:16 CMA fines Berendsen for cleanroom laundry competition pact

UK competition regulators have slapped a £1.7m fine on Berendsen and a rival laundry company after finding them guilty of collusion.

07:58 United Utilities says planning for new pricing regime is 'advanced'

United Utilities said its plans to meet new water pricing requirements were at an advanced stage after it consulted with customers.

07:57 IMI gobbles up Bimba in £148m deal

IMI has agreed to acquire Bimba, a manufacturer of pneumatic, hydraulic and electric motion solutions with an extensive distributor network principally servicing the North American industrial automation market, it announced on Thursday.

07:56 Ocado's sales growth hit by lack of delivery drivers

Ocado reported slightly slower sales growth in the fourth quarter as a lack of delivery drivers put the brakes on capacity, though previous falls in the online grocer's average basket size were arrested.

07:54 Sports Direct first-half profits slump 67%

Sports Direct posted a 67% drop in pre-tax profit for the half year on Thursday even as group revenue rose.

07:46 Ocado sales slow slightly, acquisition-hungry Bunzl buys Lightning Packaging

London open

07:40 London pre-open: Stocks seen lower as investors eye BoE, ECB policy announcements

London stocks were set for a slightly weaker open on Thursday as investors digested a rate hike by the Federal Reserve and looked ahead to more policy decisions from the Bank of England and the European Central Bank.