Residential Secure Income (ReSI), which invests in affordable shared ownership, retirement and local authority housing, has entered into a new £300 million (€331 million/$376 million), ultra-long-term secured debt facility with the Universities Superannuation Scheme (USS), one of the United Kingdom’s largest pension schemes.
The new 45-year facility is drawable against acquisitions over the next three years and represents the first standalone investment-grade financing secured for shared ownership, a sector where growth and supply have been constrained by a lack of long term institutional debt.
The facility provides ReSI with long-term and low-cost funds to achieve full income generation and subsequently grow its shared ownership portfolio. The RPI-linked debt has an annual coupon of 0.461 percent while the debt principal will inflate in line with the RPI linked rent in ReSI’s shared ownership leases, with an RPI collar of 0 percent and 5 percent per year. The
