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Residential Secure Acquires 39 New Build Shared Ownership Homes.

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Vincent

MANews-(C)2009-2022

UK-based real estate investment trust Residential Secure Income plc (LSE: RESI) has exchanged contracts to acquire 39 newly completed homes for delivery as shared ownership for net consideration of GBP 7.5m (USD 9.43m), the company said.

The new homes consist of one, two and threeâ[euro]bedroom apartments in new developments in Purley, Coulsdon and Addiscombe, which are all part of the London Borough of Croydon.

The homes have been developed to a high specification, with timber parquet flooring, Silestone worktops, Bosch appliances and private balconies.

The homes meet or exceed ReSI plc's sustainability criteria and include secure cycle storage, solar energy, electric vehicle charging points, and have an energy efficiency Environmental Performance certificate rating of B.

The acquisitions will complete in a staggered manner over the next few months to ensure that on completion the properties are ready for occupation by shared owners.

All homes will be sold on shared ownership 999-year leaseholds with uncapped annual RPI + 0.5% linked rent increases, with the rental income underpinned by residents' ownership stakes in their homes.

Once acquired and occupied the homes are expected to deliver an annual rent of GBP 0.3mn and they will generate an expected inflation-linked leveraged yield in line with ReSI plc's 8% total return and c.5% dividend targets.

The properties are being...

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