Gresham House Residential Secure Income LP (ReSI LP) has agreed to fund a duo of housing developments from SME property developer Stratton Land.
ReSI LP has forward purchased 69 houses just outside Minehead, Somerset, the first of which will be completed in January next year, and in Eastry, Kent, it has agreed to forward fund the development of 94 houses on a former brownfield site, which will be handed over to shared owners in Q4 2023 to Q1 2025.
Launched in May 2021, ReSI LP raised £186m in capital commitments in its first year and aims to deliver social benefits by lowering the lifetime cost of housing for lower and middle-income people while providing investors with stable and secure, long-term income returns that contractually rise with inflation.
Alistair Wardell, investment director at Gresham House, said: “These successful investments will help ReSI LP to continue to deliver attractive returns for investors while also supporting the delivery of much needed high quality affordable housing in Minehead and Eastry, both areas where housing is highly unaffordable for local residents.
“We are pleased to be working with Stratton Land, a family-owned SME business with an outstanding track record of delivery. They demonstrated admirable flexibility in a tumultuous market, to develop these house-led schemes, which provide efficient, sustainable and good value homes at a time of significant cost of living increases.”
Sebastian Arbis, managing director at Stratton Land, said: “Gresham House’s expertise in the residential investment space made it a natural partner for Stratton Land on these transactions and provides the long-term capital necessary to develop these houses in historically undersupplied areas. These deals will also support our continued growth across southern England, enabling us to redeploy capital into our ambitious pipeline of developments.”
Safi Captan, managing director at investment broker Whitedrake, which advised Stratton Land on both transactions, added: “Gresham House are a tremendous counter-party to kick-start Stratton Land’s ambitious growth plans, having provided innovative solutions to enable the funding of both deals and transacting in an efficient timeframe.”
