Gresham House to launch shared ownership fund

Gresham House is planning to launch a vehicle for institutional investors and local government pension schemes to invest in shared ownership housing. The limited partnership Gresham House Residential Secure Income will run alongside the REIT. In March, Gresham House acquired TradeRisks, the fund manager for Residential Secure Income REIT. The new vehicle will be a for-profit registered provider of social housing. It will acquire government grant funded homes at a bulk discount and section 106 homes. GH ReSI will have an initial rental yield of 3.4% per annum, increasing at RPI plus 0.5%. It will target an IRR of 6.4% with a dividend yield in excess of 3% per year. Tony Dalwood, chief executive at Gresham House, said: “GH ReSI LP’s risk, return and social impact profile should particularly resonate with investors, as they increasingly seek strategies which provide a clear benefit to society and the environment.” Institutional investors are increasingly turning to housing associations for investment opportunities, which are typically counter-cyclical and supported by stable cash flows, government support, and regulatory oversight. This week, Aberdeen Standard agreed a £70m financing deal with Network Homes, with other institutional buyers flocking to blocks sales from A2Dominion and Notting Hill Genesis. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette