Clarke Willmott acts on latest multi-million deal for client Orbit
Clarke Willmott has acted on a second shared ownership tenanted transaction deal between Residential Secure Income plc (ReSI) and social housing provider Orbit.
The latest deal worth £21 million comprises 182 shared ownership homes across 10 counties in the UK, taking ReSI plc’s total shared ownership portfolio to more than 725 homes.
The deal comes after ReSI’s acquisition of 191 properties from Orbit representing a £16 million investment in March 2021.
ReSI plc, which invests in affordable shared ownership, retirement and local authority housing, is managed by Gresham House which manages over 1,250 shared ownership homes held within two wholly owned RPs and around 3600 rental homes.
Orbit, one of England’s largest social housing providers, was advised by a multi-discipline team from national law firm Clarke Willmott as well as a team from JLL on both deals.
Vicky Kells, partner in the commercial property team and joint head of the social housing sector at Clarke Willmott, helped to lead the deal. She said: “Having worked closely with Orbit since 2020 and leading on 2021’s deal with ReSI, it was fantastic to again act on this important transaction between the two. The sale involved input from across our national social housing team, including property, leasehold and asset management, planning, corporate, charity law, tax and employment. It was great to support Orbit through the process, and continue helping on the organisation’s portfolio densification strategy, driving operational efficiencies for Orbit and supporting the delivery of more affordable new homes.”
Mark Hoyland, group chief executive at Orbit, added: “We are pleased to be working with ReSI on this transaction as a provider which shares our values. This transaction is part of our densification strategy, which aims to optimise our property portfolio. By delivering operational economies of scale we are able to support the delivery of more affordable new homes and further our work with customers and partners to ensure long-term, sustainable economic growth.”
Ben Fry, managing director of housing at Gresham House, said: “We are delighted to announce this second transaction with Orbit for 182 tenanted shared ownership homes. This acquisition continues our proven partnership-led approach with Housing Associations and follows the Gresham House closing of similar transactions in 2021 with Metropolitan Thames Valley and Swan Housing. Rising demand and historic undersupply mean there is a growing need for affordable housing in the UK — 94% of which is currently provided by not-for-profits such as Orbit. ReSI’s ability to provide these organisations with new capital supports their development of much needed new affordable homes. At the same time, this strategy offers a stable source of inflation-linked income for savers looking to secure their future in an increasingly uncertain environment.”