Edmond de Rothschild REIM Acquires 119-Unit Residential Development in Newbury for £34m
Edmond de Rothschild REIM Acquires 119-unit Residential Development in Newbury for £34m
In a significant move towards expanding its affordable housing portfolio, Edmond de Rothschild Real Estate Investment Management (REIM) has acquired a 119-unit residential development in Newbury for £34m (€39.7m) from Nelson Group for its UK affordable housing fund.
This acquisition marks the full deployment of Funding Affordable Homes’s (FAH) most recent fundraising round from Local Government Pension Scheme clients. With the addition of Newbury, FAH’s portfolio now comprises almost 900 homes across 11 schemes, valued at around £160m. Edmond de Rothschild REIM aims to grow the fund to more than £500m.
The recently completed Newbury development, the first phase of Sterling Gardens on Kings Road, will provide 27 apartments for social rent, 62 for affordable rent, and 30 for shared ownership in six blocks. The homes will be managed by Pinnacle, a nationwide housing services provider under a management agreement with Funding Affordable Homes Housing Association (FAHHA), the subsidiary housing association of FAH.
Adrian D’Enrico, fund manager of FAH, highlighted the importance of institutional impact capital in delivering new, additional affordable homes using grant subsidy to support viability. Richard McCarthy, chair-elect of FAH Housing Association, expressed delight in the team’s delivery of new homes into the affordable housing provision of Newbury, with the support of Homes England and West Berkshire grant subsidy.
FAH, categorized as an Article 9 product under the EU Sustainable Finance Disclosure Regulation, adopted an evergreen structure in November 2022 and secured a £30m investment from Strathclyde Pension in early 2023, the first of its new capital raising period. This investment is being used to fund the Newbury acquisition, alongside grant subsidy from Homes England and the local authority, West Berkshire.
The acquisition of the 119-unit residential development in Newbury marks a significant milestone for Edmond de Rothschild REIM and FAH in their mission to provide quality affordable housing and make a positive impact on communities.
