Thrive Homes and CBRE UK Affordable Housing Fund announce second portfolio acquisition for 86 new homes
27 April 2022
Long-term partnership is delivering on aspirations to acquire and develop over 1,000 affordable homes
Leading professional landlord, Thrive Homes and global real assets investment manager, CBRE Investment Management on behalf of their UK Affordable Housing Fund (UK AHF) have completed on their second transaction together.
Contracts have been exchanged on the second round of the deal, for a further 86 affordable rent and shared ownership properties, over eight sites developed by Thrive Homes. In order to provide an equitable ownership structure in the affordable housing sector, as long-term partners, Thrive Homes and CBRE Investment Management will share the risk and return of ownership and operation of the homes.
The cash investment for Thrive will fund the construction of an equivalent number of new affordable homes at the organisation’s sites at Leighton Buzzard Garden Centre and Bromham Road. The transaction will assist the acceleration of its development programme of c.300 homes per annum which will continue to grow by building out schemes in Thrive’s 1,000-unit landbank, and ultimately enable the housing association to achieve its growth objective of doubling in size over the next ten years. Thrive currently owns and manages over 5,000 homes across the home counties.
CBRE UK Affordable Housing Fund was one of the first, and now more established, UK unlisted funds targeting institutional client capital into affordable housing across the UK. It has spearheaded the need for institutional capital to fulfil the funding shortfall of investment to build, refurbish and maintain good quality affordable housing stock where it’s needed most, while delivering attractive returns* for its investors.
Jack Burnham, Executive Director of Growth & Investment for Thrive Homes commented:
“We’re thrilled that our partnership with CBRE Investment Management is gathering further momentum with this second acquisition. This latest exchange accelerates our growth plans, and importantly enables us to deliver much-needed affordable homes in areas that are some of the most expensive to live in the UK.”
Andrew Davey, Fund Manager of the UK Affordable Housing Fund, CBRE Investment Management added: “This second tranche of 86 homes meets the fund’s objectives to provide affordable homes to those most in need as well as offering robust return characteristics to our investors”.
Thrive hopes to secure additional new schemes in 2022 as part of the long-term partnership with CBRE Investment Management for potentially 1,000 new homes over the next five years.