Trowers & Hamlins advises ReSI REIT on £60m acquisition of shared ownership apartments
Top 40 law firm Trowers & Hamlins has advised ReSI REIT on £60 million acquisition of shared ownership apartments.
Residential Secure Income plc (ReSI) has exchanged contracts to acquire 132 new-build market sale apartments at Clapham Park, Lambeth from Metropolitan Thames Valley Housing for £60 million, which will be converted to shared ownership using grant funding from the Greater London Authority.
The apartments will be acquired by ReSI in two phases from Metropolitan Thames Valley Housing (MTVH), which is leading the Clapham Park regeneration masterplan and which will retain the long term management of the apartments. This management arrangement complements other schemes where MTVH manages properties in ReSI's portfolio.
The 1, 2 and 3 bedroom apartments will be held through ReSI's wholly-owned subsidiary ReSI Housing Limited, a regulated for-profit Registered Provider of social housing. ReSI Housing Limited will utilise grant funding from the Greater London Authority’s Homes for Londoners programme in order to deliver this scheme as affordable shared ownership.
The acquisition will also enable MTVH to recycle the proceeds into further developments thus supporting MTVH in the delivery of new homes.
Ben Fry, managing director at ReSI Capital Management Ltd, ReSI's fund manager, said:
"This is a further example of how ReSI is able to contribute positively to the delivery of affordable housing in the UK and demonstrates our ability to acquire Shared Ownership portfolios through partnerships with Housing Associations."
Trowers & Hamlins advised ReSI on all aspects of this innovative project, including property and construction due diligence as well as negotiation of all transactional documentation.
Jeremy Hunt, partner in Trowers & Hamlins' real estate team, said:
"We are delighted to continue advising ReSI on its pipeline of investment in affordable housing and supporting them in creating additional affordable housing and real value through partnership working with private developers and housing associations."