A social housing fund is to be one of the first companies to test investor appetite in the nervous post-election era.
Residential Secure Income will become the second real estate investment trust to invest in social housing today as it announces its intention to float and raise £300 million.
The company will buy freeholds from large housing associations that need cash and leave them to handle management and rent collection of the properties on long-term leases. The pressure to build more homes combined with a big cut in government grants for housing associations means they are having to seek new ways to finance their development and create plans that do not rely on assets being held on their balance sheets.
RSI’s decision to go ahead