BlackRock and heylo agree GBP362.5m funding facility for shared ownership homes
BlackRock has acted as the majority debt provider on heylo housing’s GBP362.5 million acquisition of a portfolio of 3,000 shared-ownership homes through its Home Reach scheme, marking a significant milestone for BlackRock and heylo.
heylo is the UK’s specialist provider of shared ownership housing, working with government, Homes England and over 90 house builders to deliver shared ownership properties from Carlisle to Cornwall. Its Home Reach product expands the pool of eligible homebuyers, helping them buy a share in their home with equity and a mortgage and pay a long-term, inflation-linked rent to lease the remaining share. It is currently available on 240 developments nationwide.
Funding for the portfolio acquisition comprises GBP262 million index-linked and GBP100 million fixed rate facilities provided over 25-years. This marks BlackRock Real Assets’ eighteenth investment in the UK residential sector, where it has so far committed GBP1.1 billion, demonstrating its commitment to support affordable living across the UK.
Jonathan Stevens, Head of European Infrastructure Debt at BlackRock, says: “heylo housing plays an important role in supporting the provision of affordable housing in the UK and we’re thrilled to assist its latest acquisition. The transaction demonstrates BlackRock’s ability to provide sizeable, flexible debt solutions and our pursuit of investments aligned with clients’ ESG commitments.”
This portfolio acquisition follows Vistry Group’s decision to commit 1,000 homes to the Home Reach programme, with a gross open market valuation of approximately GBP300m. They will be delivered over a two-year build programme across 89 sites within 62 local authorities.
Vistry Group’s Chief Executive, Greg Fitzgerald, says: “We have developed a great relationship with heylo’s team, enabling hundreds of happy customers to move into our homes across the country. Delivering affordable quality homes with a broad mix of tenures is embedded in our sustainability strategy. We look forward to continuing our work with heylo to help those individuals and families striving to get the keys to their dream homes.”
Wayne Bennett, National Partnership Director of heylo, says: “Continuous engagement with our investors, Homes England and our housebuilder partners has meant that Home Reach is now a widely recognised mainstream product suite sitting alongside Help to Buy and Part Exchange. We’re working hard to help millions of people across the UK achieve home ownership. Housing supply continues to lag demand and so we’re focused on the win-win-win: helping housebuilders build and sell the right mix of stock; enabling more people to get on in life and enjoy home ownership; and creating attractive, high-quality investment returns for providers of capital.”