Real estate investment firm Edmond de Rothschild REIM has purchased a newly built housing complex in Newbury, England, from Nelson Group.
This £34 mln (€40 mln) acquisition was the first for the firm’s UK affordable housing fund, Funding Affordable Homes (FAH), after its new capital raising period.
Sterling Gardens offers 119 affordable apartments (one, two, and three-bedroom) spread across six buildings.
This project provides much-needed affordable housing options, including: 27 apartments for social rent, 62 apartments for affordable rent, and 30 apartments for shared ownership.
The recently completed complex boasts a landscaped courtyard and is conveniently located within a 10-minute walk of Newbury’s town center and near two train stations.
Adrian D’Enrico, fund manager of FAH, said: ‘The acquisition highlights the role that institutional impact capital can play in delivering new, additional affordable homes using grant subsidy to support viability.’
Richard McCarthy, chair-elect of FAH Housing Association, added: ‘We are delighted that our deeply experienced team has delivered these new homes into the affordable housing provision of Newbury, with the support of Homes England and West Berkshire grant subsidy. These new homes will help to alleviate local housing pressure, delivering positive social impact for the residents and the wider community.’
Pinnacle, a national housing management company, will oversee the apartments under an agreement with Funding Affordable Homes Housing Association (FAHHA), a subsidiary of FAH.
The acquisition of the Newbury property adds nearly 900 homes to FAH’s portfolio, bringing its total to almost 1,500 affordable homes across 11 schemes, with a combined value of around £160 mln (€187 mln).
FAH’s real estate advisor, EdR REIM, aims to significantly increase the portfolio to over £500 mln (€583 mln), providing affordable housing to up to 3,000 people across the UK.
