Devonshires advises on £21.3 million acquisition of local authority housing

Devonshires has recently advised Residential Secure Income plc (“ReSI”), a listed investment fund which invests in residential asset classes that comprise the stock of UK social housing providers, on its £21.3 million acquisition of a freehold residential building in Luton benefitting from a lease to the local authority.

ReSI has acquired the property which is used to provide housing under the local authority’s statutory obligations. In 2016 the building underwent a full refurbishment and contains 134 self-contained residential flats.

The transaction was structured by way of the purchase of the shares in the property-owning special purpose vehicle.

James Lyons, Corporate Partner at Devonshires, said: “Providing, and maintaining, good quality affordable housing is a major challenge faced by Local Authorities and Registered Providers. In the last year we have seen an increase in investment funds entering the market and have been delighted to work with Residential Secure Income PLC on this acquisition which in turn will help the local authority meet their housing obligations.”

Ben Fry, Fund Manager at ReSI Capital Management Ltd, a wholly owned subsidiary of TradeRisks Limited, said: “By investing capital in good quality, modern housing, we can help local authorities meet their obligations to provide accommodation without relying on expensive and short-tenure solutions such as hotels or hostels. Investments such as this provide ReSI shareholders with a local-authority backed, inflation-linked income stream underpinned by the continuing strong demand for such accommodation.”

Our team was led by corporate partner James Lyons with property advice from Neil Toner, our Head of Real Estate and construction advice from partner Asif Patel. Support was provided by paralegal Megan Bruce and trainee Solicitors Laura Baker and William O’Brien.

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