Residential Secure Income PLC NEW MANAGEMENT AGREEMENT FOR RETIREMENT PORTFOLIO (7159Y)
May 13 2019 - 1:00AM
UK Regulatory
TIDMRESI
RNS Number : 7159Y
Residential Secure Income PLC
13 May 2019
13 May 2019
Residential Secure Income plc
New management agreement for retirement housing portfolio
Residential Secure Income plc ("ReSI") (LSE: RESI), which
invests in affordable shared ownership, retirement and local
authority housing, is pleased to announce that, following a
competitive tender process, it has signed a new ten year management
agreement with Places for People group, covering the day-to-day
management, rent collection and maintenance of its 2,219-unit
retirement housing portfolio.
The new contract incentivises Places for People to drive value
in the portfolio by reducing voids and improving operational
performance, and builds on Places for People's existing management
of the portfolio through its specialist retirement division,
Girlings.
Places for People group own or manage nearly 200,000 homes
across a wide range of housing tenures in the UK and is rated G1/V1
by the Regulator of Social Housing.
Purchased in 2017 and 2018, ReSI's retirement housing portfolio
now totals 2,219 properties. The ownership model's defensive
characteristics are underpinned by the security of the rental
stream, with tenants primarily paying rent out of pensions and
housing benefits rather than employment income, and so having low
sensitivity to the economic cycle. Almost 25% (by net operating
income) of the portfolio is used to house the individual managing
the retirement home for ReSI and other leaseholders, providing
additional rental security.
Pete Redman, of ReSI Capital Management Ltd, ReSI's fund
manager, commented: "Following a competitive tender process, we are
confident that, with the new contract structure and through working
more closely together, Places for People is best placed to maximise
returns from our retirement housing portfolio, with enhanced
incentives to reduce voids and improve portfolio operating
performance for the benefit of ReSI shareholders."
-End-
FOR FURTHER INFORMATION, PLEASE CONTACT:
ReSI Capital Management Limited / TradeRisks
Limited
Ben Fry
Alex Pilato
Mark Rogers
Jonathan Slater
Richard Stubbs +44 (0) 20 7382 0900
Jefferies International Limited
Stuart Klein
Gary Gould +44 (0) 20 7029 8000
-------------------------------
FTI Consulting +44 (0) 20 3727 1000
Richard Sunderland Email: resi@fticonsulting.com
Claire Turvey
Richard Gotla
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About Residential Secure Income plc
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 invests in shared ownership and rental portfolios of Homes
across residential asset classes that comprise the stock of Housing
Associations and Local Authorities throughout the UK. To date it
has committed c. GBP300 million, comprising a portfolio of 2,674
properties, across 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 an 18 year track
record of executing transactions within the UK social housing
sector and, to date, has arranged funding of over GBP10 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 developers (Housing Associations, Local
Authorities and private developers) for long-term investment
partners who support them to accelerate development of socially and
economically beneficial new housing making a meaningful
contribution to the UK housing shortage.
Homes acquired by ReSI are 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 are 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.
Further information on ReSI is available at
www.resi-reit.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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