Gresham House Residential Secure Income LP raises a further £125mn from LGPS

Gresham House Residential Secure Income LP (GH ReSI LP), has raised a further £125mn from two UK local authority pension schemes.

This new capital is expected to facilitate c.£300mn of investment into over 1,000 much needed new affordable homes, building on the over 1,400 homes already invested in by GH ReSI LP through 18 acquisitions across England.

The commitments from Gloucestershire and Devon Pension Funds have brought total commitments to GH ReSI LP to over £310mn, with investors increasingly seeking investments that can deliver robust, inflation-linked income streams while having a positive impact. As well as committing to the UK-wide strategy, both Gloucestershire and Devon Pension Funds have made additional commitments for local investment which will deliver new affordable housing for local residents in their counties – helping to build thriving and inclusive local communities.

GH ReSI LP is an evergreen UK limited partnership that was launched in May 2021 to invest in the delivery of shared ownership housing through its wholly owned registered provider of social housing, ReSI Homes, and is focused on:

• Providing investors with stable and secure long-term income returns that contractually rise with inflation; and
• Fulfilling a key societal need by lowering the lifetime cost of housing for those on lower to middle incomes, such as young families and key workers through making new energy efficient homes affordable and accessible.

With all previous commitments already invested and a strong pipeline of opportunities, the new capital will be deployed at pace over the coming months. GH ReSI LP has previously received commitments from several other UK institutional investors, including Staffordshire and Wiltshire pension funds and Centrica Combined Common Investment Fund.

Ben Fry, Managing Director, Housing said:

“This continued strong backing from institutional investors is testament to Gresham House’s extensive expertise and track record in affordable housing, and the growing recognition of the dual benefits that shared ownership investments can deliver – resilient inflation-linked income and lowering the lifetime cost of housing for young families and key workers.

We have a wealth of opportunities in the pipeline, so we will be putting this new capital to use over the coming months to deliver more new developments both across the UK and specifically in Gloucestershire and Devon. We look forward to working with a combination of national and smaller local housebuilders to deliver these much-needed new affordable homes.”

Cllr Lynden Stowe, Chair of the Gloucestershire Pension Fund, said:

“The Pension Fund has recently implemented a new allocation to affordable housing and believes that shared ownership will provide both financial and positive impact benefits. Through this commitment to shared ownership we will contribute to the delivery of much-needed new housing for our residents in Gloucestershire. We have been impressed with Gresham House’s track record of delivery in the shared ownership space over recent years and believe this investment will provide a robust financial return alongside meaningful social benefits.”

Cllr James Morrish Chair of the Devon Investment and Pension Fund Committee, said:

“We are delighted to be making this significant contribution to GH ReSI LP, which will deliver stable long-term returns for our members while supporting the provision of vital new housing in Devon, where affordability is often an acute challenge. The experience of the Gresham House team makes this strategy particularly attractive, and we look forward to seeing the impact of our investment in the local area over the coming years.”

You may also be interested in…