TIDMRESI TIDMGHE
RNS Number : 0575F
Residential Secure Income PLC
05 March 2020
5 March 2020
Residential Secure Income plc
Gresham House acquires ReSI plc's Fund Manager Group
Gresham House to acquire ReSI Capital Management Limited and its
parent company TradeRisks Limited
Residential Secure Income plc ("ReSI") (LSE: RESI), which
invests in affordable shared ownership, retirement and L ocal A
uthority housing, announces that TradeRisks Limited ("TradeRisks"),
the parent company of ReSI's Fund Manager, Residential Capital
Management Limited ("RCM"), has been acquired by Gresham House plc
, the specialist alternative asset management business which is
listed on the London Stock Exchange and has GBP2. 8 billion of
assets under management. Under the terms of the acquisition , RCM
will continue as the alternative investment fund manager of ReSI,
with the day-to-day operations and strategic direction remaining
unchanged under the current team .
ReSI also announces that Jon Slater, the current Chief Executive
of RCM, will retire, following his move to live overseas in 2018 .
Alex Pilato, the founder and Chief Executive of TradeRisks who has
been closely involved in all aspects of ReSI 's business since
before the IPO in 2017 will take over his role . He will also
assume overall leadership of the newly - formed combined Housing
Division at Gresham House. RCM 's Investment Management continues
to be led by Ben Fry, with Mark Rogers and Pete Redman leading the
origination and housing management teams respectively. All 23
TradeRisks /RCM employees, comprising 19 investment and corporate
finance professionals, and four in support functions, will join
Gresham House's Real Assets division.
Alex Pilato, Chief Executive of TradeRisks, commented: "This is
a positive development for ReSI shareholders. RCM will benefit from
Gresham House's robust central platform that includes distribution,
investor relations, compliance, reporting and risk capabilities.
This will free up the team allowing it to focus on origination,
delivering full occupancy on our shared ownership portfolio and
putting in place low cost long term debt to support our returns and
reach full deployment, producing high-quality and sustainable
income for ReSI's shareholders and delivering significant social
value.
"Longer-term we expect to benefit from the strength of Gresham
House's institutional relationships, bringing new investors into
ReSI and shared ownership. At the same time, there is a clear
alignment between the two businesses in terms of their focus on
those sectors that are both supported by permanent societal shifts,
and which can deliver financial and social impact."
Rob Whiteman, Chairman of ReSI plc, added: " The Board of ReSI
supports the decision of its fund manager group to be acquired by
Gresham House which it considers an excellent partner and platform
to enable RCM to continue delivering strong performance on behalf
of ReSI plc ."
Anthony Dalwood, Chief Executive of Gresham House plc,
commented: "The acquisition is consistent with the group strategy
to grow existing platforms. Gresham House is focused on investing
in sustainable real assets and the acquisition of TradeRisks/RCM
allows us to enhance our social and specialist housing offering for
clients, an area identified as structurally important for the UK.
Gresham House also expects to raise further funds in the housing
segment via ReSI plc and new private funds targeting institutional
investors as limited partnerships. There is a strong cultural
alignment between the two businesses and the Gresham House platform
will be strengthened by the integrated expertise of the
TradeRisks/RCM teams."
Gresham House is a fast-growing specialist alternative asset
management company focused on sustainable investment for its
clients and shareholders. The Group currently has GBP2.8bn in AUM
and, through its British Strategic Investment Fund (BSIF), the
Group targets local housing investments on behalf of local
government pension schemes. The Gresham House platform is well
established and should provide opportunities for growth and
investment in the RCM team. The sectors addressed by RCM's offering
are key areas for Gresham House to be able to scale its social
housing strategy and to broaden its sustainable offering to
investors.
-End-
FOR FURTHER INFORMATION, PLEASE CONTACT:
ReSI Capital Management Limited / TradeRisks
Limited
Ben Fry
Alex Pilato
Mark Rogers
James Sly +44 (0) 20 7382 0900
KPMG Corporate Finance
Raj Mehta
Sam Friel +44 (0) 20 7311 1000
Jefferies International Limited
Stuart Klein
Gary Gould +44 (0) 20 7029 8000
FTI Consulting +44 (0) 20 3727 1000
Richard Sunderland Email: resi@fticonsulting.com
Claire Turvey
Richard Gotla
NOTES:
Residential Secure Income plc (LSE: RESI) is a real estate
investment trust (REIT) listed on the premium segment of the Main
Market of the London Stock Exchange with the objective of
delivering secure inflation linked returns by investing in
affordable shared ownership, retirement and Local Authority housing
throughout the UK.
ReSI targets a secure, long-dated, inflation linked dividend of
5.0 pence per share p.a. (paid quarterly) and a total return in
excess of 8.0% p.a. and has to date committed c. GBP321 million,
assembling a portfolio of 2,680 properties.
ReSI aims to make a meaningful contribution to alleviating the
UK housing shortage by meeting demand from housing developers
(Housing Associations, Local Authorities and private developers)
for long-term investment partners to accelerate the development of
socially and economically beneficial new affordable housing.
ReSI's subsidiary, ReSI Housing Limited, is registered as a
for-profit Registered Provider of Social Housing, and so provides a
unique proposition to its housing developer partners, being a long
term private sector landlord within the social housing regulatory
environment. As a Registered Provider, ReSI Housing can acquire
affordable housing subject to s106 planning restrictions and
housing funded by government grant.
ReSI is managed by ReSI Capital Management Limited, a wholly
owned subsidiary of TradeRisks Limited which has a 19 year track
record of executing transactions within the UK social housing
sector and, to date, has arranged funding of over GBP11 billion in
the social housing, care and other specialist residential property
sectors.
Acquisitions by ReSI are limited to homes with sufficient
cashflows, counterparty credit quality and property security to be
capable of supporting long term investment grade equivalent
debt.
ReSI does not manage or operate stock and uses experienced and
creditworthy third party managers.
Further information on ReSI is available at
www.resi-reit.com
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END
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