Gresham House, who acquired TradeRisks and ReSI Capital Management in early March, announces new Registered Provider of Social Housing
Gresham House plc, the AIM quoted specialist asset manager with c.£3bn under management, and ReSI Capital Management, the manager of Residential Secure Income plc (“ReSI plc”), are pleased to announce that ReSI Homes Limited, currently a subsidiary of ReSI Capital Management Limited, has become, on 23 March 2020, a Registered Provider with the Regulator of Social Housing.
ReSI Homes will see funds managed by Gresham House and ReSI Capital Management invest long-dated institutional capital, including local government and corporate pension money, into the social housing sector, with a primary focus on shared ownership. The social housing sector has become increasingly attractive to institutional investors due to its secure income streams and strong ESG credentials.
ReSI Capital Management has a 19-year track record of bringing institutional investment into the UK social housing sector including debt through banks, fund managers and insurance companies and equity from wealth managers, retail investors and institutional managers through its listed fund, Residential Secure Income plc, via its Registered Provider ReSI Housing Limited which is chaired by David Orr OBE.
ReSI Capital Management and its parent TradeRisks were acquired by Gresham House plc at the beginning of March 2020. ReSI Capital Management has an identified pipeline of initial transactions and the funding in place, via Gresham House managed funds, to execute on a select number of acquisitions.
TradeRisks pioneered the concept of maximising and measuring social enterprise value delivered by the sector and associated governance implications in 2004 and has continued to prioritise ESG as a key criterion in its investment decisions. This approach aligns with Gresham House, which is recognised for its strong ESG credentials, being the largest investor in commercial UK forestry and having pioneered investment in regional sustainable infrastructure required to achieve a zero carbon economy such as energy storage, renewable energy, waste recycling and vertical farming.
Alex Pilato, Chief Executive of ReSI Capital Management and head of Gresham House’s Housing Division, commented: “Via different funds managed by Gresham House, we are now able to invest in shared ownership and affordable housing across the development cycle and at different return levels. This includes taking development risk, acquiring developed open market stock and utilising grants to deliver as shared ownership (such as our first scheme at Totteridge), as well as acquiring retained equity in shared ownership to free up housing association balance sheets to invest in much needed new homes.
“We are encouraged by other new entrants following our approach of working with the social housing sector to provide additionality, rather than following the alternative approach of creating long term lease liabilities for the sector.
“As with ReSI plc, we aim to make a meaningful contribution to alleviating the UK housing shortage by meeting demand from housing developers, including Housing Associations, Local Authorities and private developers, for long-term investment partners, to accelerate the development of socially and economically beneficial new affordable housing.”
FOR FURTHER INFORMATION, PLEASE CONTACT:
ReSI Capital Management Limited / Gresham House Housing +44 (0) 20 7382 0900
Ben Fry
Alex Pilato
Mark Rogers
Heather Fleming
Rupert Robinson
Anthony Dalwood
About TradeRisks, ReSI Capital Management and Gresham House
TradeRisks Limited is a specialist provider of debt structuring and advisory services to the housing and social infrastructure sectors, with strong ESG credentials. Its team has 19 years of experience advising and raising financing for social housing, Local Authorities, university housing projects, care homes, and other infrastructure assets. TradeRisks is authorised and regulated by the UK Financial Conduct Authority and registered as Investment Adviser with the Securities and Exchange Commission of the United States since 2002.
TradeRisks’ wholly owned and separately regulated alternative fund manager subsidiary, ReSI Capital Management Limited, is the manager of Residential Secure Income plc (LSE: RESI), a closed-ended investment company which seeks to deliver secure income returns to its shareholders by investing in portfolios of shared ownership, retirement and local authority housing.
Gresham House acquired TradeRisks and ReSI Capital Management Limited on 5 March 2020.
Gresham House is an AIM quoted specialist asset manager providing funds, direct investments and tailored investment solutions, including co-investment across a range of highly differentiated alternative investment strategies. Our expertise includes timber, renewable energy, housing and infrastructure, strategic public and private equity (private assets). The group aims to deliver sustainable financial returns and is committed to building long-term partnerships with clients (institutions, family offices, high-net-worth individuals, charities and endowments and private individuals) to help them achieve their financial goals.
Shareholder value creation will be driven by long-term growth in earnings as a result of increasing AUM and returns from invested capital.