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Thrive Homes signs second deal with CBRE, on 86 affordable units

News28 Apr 2022James Twomey

Thrive Homes and CBRE UK Affordable Housing Fund have struck a second deal, which will see 86 shared ownership and affordable homes developed by the association transferred to the investor.

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Thrive Homes and CBRE UK Affordable Housing Fund have struck a second deal which will see 86 shared ownership and affordable homes developed by the association transferred to the investor #SocialHousingFinance #UKHousing

The landlord first announced a deal with the investment fund manager in January this year, to lease out and manage 117 affordable rent and shared ownership units under an arrangement it called a first for the sector.

 

CBRE acquired those units from Thrive’s development programme on a long (250-year) lease, with the association retaining the freehold. The homes are then operated by Thrive on a 250-year management lease.

 

On that deal, the 5,100-home landlord said it was a “90/10 investment plan”, with CBRE putting in 90 per cent of the funding and Thrive providing the remaining 10 per cent, and risks shared on the same proportionary basis.

 

Contracts have now been exchanged on the second round of a deal, for a further 86 affordable rent and shared ownership properties, over eight sites developed by Thrive Homes.

 

For both deals, Thrive Homes and CBRE will share the risk and return of ownership and operation of the homes and the landlord said it forms a partnership that hopes to acquire and develop more than 1,000 affordable homes.

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Thrive said the cash investment from its most recent deal with CBRE will fund the construction of an equivalent number of new affordable homes at two sites.

 

The transaction will assist the acceleration of its development programme of circa 300 homes per year, which will continue to grow by building out schemes in Thrive’s 1,000-unit landbank.

 

The housing association said it has growth objective aims of doubling in size over the next ten years. Thrive currently owns and manages over 5,000 homes across the Home Counties. 

 

Jack Burnham, executive director of growth and investment for Thrive Homes, said: “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.”

Thrive said it 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.

 

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."

Asset managementDealsFinanceHousing Association/RPLender
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