ReSI secures £300m facility to support shared ownership

13 July 2020 | General

Alex Pilato, chief executive at ReSI Capital Management, said: “This is significant milestone both for ReSI, as well as the social housing sector, representing the first standalone investment grade debt financing secured for shared ownership. The facility has been obtained at an extremely attractive rate with a great partner in USS and maintains our stated strategy of securing long term amortising investment grade debt which ensures asset quality, whilst minimising refinancing and covenant risk as well as interest rate exposure.”

Ben Fry, investment manager at ReSI Capital Management, added: “The facility will allow us to complete ReSI’s deployment into our attractive pipeline of shared ownership opportunities working with a range of existing and new partners. Shared ownership provides significant social impact through delivering affordable homes near employment for key workers whilst providing an excellent, secure inflation-linked investment for ReSI.

“We remain steadfast in our conviction that shared ownership is the most effective solution to lack of affordability and permanent fit for purpose homes, a view which has been enhanced during the current pandemic. Having identified shared ownership as a very scalable investment opportunity, we expect to focus our future deployment in this area, leveraging our strong relationships with housing associations and large housebuilders.”

Ben Levenstein, head of private credit at USS Investment Management, said: “This investment will provide highly attractive inflation-linked cash flows to help pay our members’ pensions, while at the same time making a positive social Impact. As a long-term, responsible investor, USS has been looking to make an investment in social housing for some time and we are pleased to be able to announce a long term partnership with ReSI. This investment will not only drive growth for ReSI, but also deliver much-needed supply to key workers and others looking for affordable homes.”

Eamon Ray, senior director at USS Investment Management, added: “We are pleased to be able to support the provision of affordable shared ownership homes throughout the UK, partnering with the team at ReSI to create a unique financing structure within the housing sector. This facility is an exciting opportunity to create a significant scale portfolio of affordable homes, delivering long-dated inflation-linked cashflows to USS with asset and cash flow backing.”

This post has originally been featured in Property Wire.