Savills Investment Management’s Simply Affordable Homes fund has purchased 94 affordable rental and shared ownership homes in Bicester, Oxfordshire, from a local developer for an undisclosed price.
The transaction, which was the second completed by the fund, was made through its for-profit registered provider Simply Affordable Homes RP.
The 94 income-producing homes are the first to be built in a diversified portfolio of 143 affordable rental and shared ownership units, and Savills IM will purchase the remaining 49 homes upon completion.
The portfolio forms part of the Heyford Park masterplan, which includes plans to construct more than 6,000 homes, 50,000 sq m of commercial space, a new railway station, school and other key infrastructure.
Dominic Curtis, fund manager for the Simply Affordable Homes Fund at Savills IM, said: “This is another significant step in the fund’s central mission, which is to address the UK’s housing challenges by delivering sustainable, affordable housing through our high-quality registered provider. The industry recognises that public-private collaboration is essential if we are to address supply-demand imbalances that are acutely felt in the affordable market, and the role of institutional capital within this.
“The transaction gives us an immediate exposure to Oxfordshire, where our strong deal sourcing network has delivered a high-quality portfolio in an attractive, growth-potential location. It allows us to provide our high-quality services to our customers from day one, further advancing our strategy of investing in properties that deliver both social impact and attractive returns for our investors.”
Keith Exford, chairman of Simply Affordable Homes RP, added: “Simply Affordable Homes has been set-up to help address the housing crisis by attracting long-term private investment capital into the provision of more affordable homes for those in need. Today marks another step in our evolution where we expand our geographic coverage and provide a positive impact to more customers with the provision of high-quality homes and services.”
