Residential Secure Income (ReSI) has agreed a deal to sell the company’s retirement living portfolio to Social Housing REIT for circa £108.3m.
The portfolio comprises 1,907 senior living rental flats and 256 housing manager flats. The disposal includes the assumption by Social Housing REIT of the existing long‑dated, fixed‑rate partially amortising debt facility provided by Scottish Widows, which has an outstanding principal amount of £92.1m as at 16 June 2026, carries a fixed all-in interest rate of 3.46% per annum, matures in 2043 and is secured against assets within the portfolio.
The disposal of ReSI’s shared ownership portfolio has also progressed, with an unnamed bidder having agreed heads of terms and entered into exclusivity following an extensive period of due diligence.
Subject to the bidder finalising its due diligence and the parties agreeing the transaction terms, the shared ownership portfolio is expected to be sold for approximately £13.5m, subject to adjustment under a completion accounts mechanism, of which £5m will be retained and is expected to be released post completion, upon satisfaction of asset management deliverables.
In October 2024, the board of ReSI announced that following a review of options for maximising shareholder value, the company would adopt a managed realisation strategy and return of capital to shareholders. At a general meeting held on 6 December 2024, 99.7% of shareholders voted in favour of a revised investment objective to implement the strategy.
Rob Whiteman CBE, chairman of ReSI, said: “We are pleased to have agreed to sell ReSI’s retirement portfolio to Social Housing REIT and deliver a substantial step in the board’s commitment to realise the company’s assets in an orderly manner. Reaching agreement with a larger, more liquid, London-listed investment company provides shareholders with potential for further value realisation while continuing to protect residents and uphold our responsibilities as a long-term housing provider.
“Since ReSI shareholders’ approval of the managed realisation strategy in December 2024, an extensive marketing process has involved outreach to a wide range of prospective investors, culminating in today’s announcement. The sale of ReSI’s retirement portfolio represents a majority of the company’s net assets, and as such is a substantial step towards completing the managed realisation. Alongside this progress and following an extensive period of due diligence, ReSI has also agreed heads of terms and entered into exclusivity with a bidder for the shared ownership portfolio, and will continue to keep shareholders updated.”
