Gresham House ReSI LP expands shared ownership portfolio with 247 home Swan Housing deal
Gresham House Residential Secure Income LP (ReSI LP), a limited partnership investing in affordable housing, has acquired a portfolio of 247 new build shared ownership homes from Swan Housing Association for cash consideration of GBP38 million.
The 247 homes are across three sites in Barking, Basildon and Ilford, consisting of one and two bedroom apartments and two and three bedroom houses, were all built within the last four years and are fully tenanted with rents linked to RPI +0.5 per cent.
ReSI LP and ReSI Homes Limited, ReSI LP’s wholly owned for profit registered provider of social housing, are managed by Gresham House, a listed specialist alternative asset manager with GBP4.7 billion under management. This transaction follows deals already completed by the ReSI team with MTVHA, Orbit, Brick By Brick, Ilke Homes and Tilia Homes earlier this year.
The ReSI team aims to alleviate the shortage of high-quality, affordable housing in England. Working in partnership with housing associations, local authorities and developers. Gresham House manages almost 1,000 shared ownership homes and 3,500 rental homes, with plans to deliver an additional 5,000 shared ownership homes by 2026.
Swan Housing will continue to manage the properties on a 20-year agreement, providing a seamless transition for shared owners. The acquisition process included a comprehensive resident consultation and ReSI’s Customer Charter will also be applied to the properties, meaning residents receive additional benefits including the ability to staircase in smaller chunks of 1 per cent, rather than the traditional 10% minimum.
David Orr, Chair of ReSI Homes, says: “We are delighted to complete this purchase and have been very impressed by the professional approach of the team at Swan. This is an extremely exciting time for us, because as a for profit registered provider we are bringing additional institutional investment into the sector. We are passionate about delivering high quality services and playing our part in driving up the standards of shared ownership. Thanks to our significant pipeline and active relationships, we are expecting to close more significant deals in the coming months.”
Geoff Pearce, Swan’s Deputy Chief Executive, says: “I am really impressed with how the Swan and ReSI teams collaborated so effectively to ensure that this transaction would see the continued delivery of high-quality services to residents whilst ensuring that the deal represents value for money for both parties. This income will allow Swan to continue to deliver on both its ambitious development programme and on improving homes and services for our customers. We see working in partnership with the for-profit RP sector as a key opportunity for Swan to unlock further investment into affordable housing delivery in the future.
“We are delighted to be continuing to work with ReSI to manage these homes. Our purpose is to find better ways of doing things so that we can improve lives and communities every day. This transaction is a clear example of how thinking differently we can do just that.”