Gresham House
Specialist asset management
December 2023
December 2023
Gresham House Residential Secure Income LP (ReSI LP), has agreed a £30mn sustainability-linked credit facility with MUFG to support the delivery of shared ownership housing in the UK.
The facility includes sustainability KPIs relating to the continued reduction of carbon emissions and the delivery of increasingly energy efficient homes. It is the first sustainability-linked credit facility agreed by Gresham House’s housing team and will support ReSI LP in its delivery of more than 1,400 affordable, shared ownership homes.
The loan aligns with Gresham House’s commitment to deliver sustainable, efficient homes within the strategy, while also bringing significant benefits to local communities, with the fund focusing on areas where the affordability of housing is a particular challenge. ReSI LP aims to deliver social benefits by lowering the lifetime cost of housing for people on lower and middle-incomes, while providing investors with secure, long-term, and inflation-linked income returns.
The deal caps a strong year for the strategy, having now committed £300mn to its portfolio of c.1,400 shared ownership homes since its launch in 2021, with an active pipeline for a further 10,000 homes.
Ben Fry, managing director, housing at Gresham House, said:
“This credit facility will support ReSI LP’s continued investment in shared ownership housing around the UK at a time when this is crucial to addressing the housing crisis. Delivering housing in a sustainable way is a key part of the fund’s strategy, so the ambitious sustainability incentives within this facility will support the fund in improving its already strong environmental performance.”
Sanjay Narbheram, head of housing finance at MUFG, said: “MUFG is delighted to have worked with the Gresham House UK Housing team on their first sustainability-linked transaction and to support the company in its commitment to sustainability.”
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