Trowers & Hamlins advises Residential Secure Income plc on 1st acquisition of £100 million retirement portfolio
International law firm Trowers & Hamlins has advised Residential Secure Income plc (“ReSI”) which invests in residential asset classes that comprise the stock of UK social housing providers, on the completion of its first acquisition with the purchase of a rental homes portfolio comprising 1,341 retirement properties for a total consideration of approximately £100 million.
The UK-wide portfolio is concentrated in Southern England and comprises 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. The portfolio provides RPI-linked assured tenancies to retirement-aged residents, offering lifetime security of tenure.
The portfolio is operated by Places for People group which is responsible for day-to-day management, rent collection and maintenance of the portfolio.
ReSI has received a number of offers from institutional funders for long-dated investment grade equivalent debt secured on the portfolio which will deliver equity returns in excess of ReSI’s total return target. ReSI is working to complete the debt transaction with its preferred funder.
The Fund Manager has also identified a number of asset management opportunities to make operational improvements within the Portfolio, which have the potential to enhance returns.
Partner, Jeremy Hunt led the transaction with partners Katie Dyer on property due diligence and Andrew Sneddon on tax. They were supported by senior associates, David Zong, Ayda Habboush and Hannah Jackson.