Extension of Term of Retirement Portfolio Leases
Residential Secure Income plc ("ReSI" or the "Company") (LSE: RESI), which invests in residential asset classes that comprise the stock of UK social housing providers, is pleased to announce that, as envisaged at acquisition, it has entered into a binding agreement to extend to 150 years the lease term of 1,003 of its long-leasehold properties.
The affected properties currently have a weighted average unexpired lease term of 74 years, and are all within the portfolio of 1,341 retirement homes which the Company announced it had purchased for £100 million on 24 November 2017. The remaining assets in this portfolio comprise 88 freehold, virtual freehold and fuehold properties, and 250 leasehold properties with a weighted average unexpired lease term of 93 years.
The Company expects that the agreed lease extensions should enhance the value of its retirement homes portfolio.
FOR FURTHER INFORMATION, PLEASE CONTACT:
ReSI Capital Management Limited / TradeRisks Limited +44 (0) 20 7382 0900
Jefferies International Limited +44 (0) 20 7029 8000
FTI Consulting +44 (0) 20 3727 1000
Richard Sunderland Email: email@example.com
Residential Secure Income plc (LSE: RESI) is listed on the premium segment of the Official List of the UK Listing Authority and was admitted to trading on the Main Market of the London Stock Exchange in July 2017.
ReSI has been established to invest in portfolios of Homes across residential asset classes that comprise the stock of Housing Associations and Local Authorities, comprising Shared Ownership Homes and Rental Homes (being Market Rental Homes, Functional Homes and Sub-Market Rental Homes) throughout the UK. To date it has deployed c. £240 million, acquiring a portfolio of 2,487 properties, comprising a mixture of shared ownership, local authority and retirement housing.
ReSI is managed by ReSI Capital Management Limited, a wholly owned subsidiary of TradeRisks Limited which has a 17 year track record of executing transactions within the UK social housing sector and, to date, has arranged funding of over £10 billion in the social housing, care and other specialist residential property sectors.
ReSI seeks to deliver secure, long-dated, inflation-linked income returns through investment in UK social housing. It aims to meet demand from Housing Associations and Local Authorities for alternative equity-like financing sources that allows them to recycle capital back into socially and economically beneficial new housing, making a meaningful contribution to the UK housing shortage.
Homes acquired by ReSI will predominantly be on a freehold or long leasehold basis (typically 99 years or more to maturity) and benefit from long term (typically 20 years plus) inflation-adjusted cash flows. Acquisitions by ReSI will be limited to Homes with sufficient cashflows, counterparty credit quality and property security that allow the Fund Manager to arrange long-term investment grade equivalent debt.