Savills IM Buys Majority Stake in Affordable Homes Platform
Savills Investment Management, the international real estate investment manager, has bought a majority share in Simply Affordable Homes from Centrus Financial, which will retain a minority interest.
The transaction follows from Savills IM’s acquisition of Pitmore, the UK development and build-to-rent specialist, and creates a beefed-up residential platform for Savills IM.
The acquisition of Simply Affordable Homes includes a registered provider approved by the Regulator of Social Housing. Remaining with Simply Affordable Homes RP are the co-founders, Dominic Curtis, who is chief executive and, Jonathan Clarke, who is the finance director.
Simply Affordable Homes RP's experienced Board includes chairman Keith Exford, who has over 40 years of housing and property experience including until 2018 as CEO of the largest housing association in Europe, Clarion Housing. The other members are Ann Santry who has 38 years’ experience working in the social housing sector, 18 of which were spent as CEO of Sovereign Housing and Jack Stephen, who was finance director of Thames Valley Housing Association for 21 years where he was responsible for establishing Fizzy Living, the private rented sector specialist.
The first new product following the acquisition will be the launch of Savills IM’s UK Affordable Housing Fund. The fund is intended to have strong sustainability and impact credentials with a primary focus on increasing the supply of affordable housing to "meet the substantial need which exists across the UK".
It will form partnership arrangements with housing associations and private developers while aiming to provide low risk, index-linked returns.
Savills said the fund will leverage the wider investment management resources of Savills IM and the research and broking capabilities of the residential team at Savills IM’s sister company Savills UK, the leading UK residential adviser. It says it can now consider a wide range of both private and affordable housing opportunities across the UK.
Alex Jeffrey, chief executive of Savills IM, said in a statement: “People in the UK face serious housing challenges, especially as regards affordability. Institutions can play an important part in helping to bridge this gap whilst providing attractive returns for their beneficiaries. This acquisition and subsequent fund launch will allow investors to gain access to this high-quality asset class and be a means of meeting their own commitments to socially responsible investment."
