Henley has launched a new fund focused on the supported housing sector and has completed its debut buy with a £70m portfolio acquisition.
The Henley Secure Income Property Unit Trust (Henley SIPUT), had its first close in July 2017 and is seeking to raise £400m within the next six months.
It will focus on the underserved but fast growing supported housing sector, targeting residential investments around the UK for the provision of long-term homes for vulnerable adults.
The investment strategy will seek to acquire assets on long-term leases to HCA-registered providers with ASTs (Assured Shorthold Tenancies) in place for qualifying adults, whose rents are met through housing benefit. There will be particular emphasis on assets which have undergone development upgrades tailored to meet the specific care requirements of each tenant.
The core long-term income fund aims to deliver income of over 5% a year over the 25-year life of the fund.
The fund’s first acquisition is a portfolio of 49 supported living properties located throughout the UK, for around £70m.
Ian Rickwood, chief executive of Henley Investments, said: “The launch of Henley SIPUT marks Henley’s first fully-discretionary fund and I’m pleased to announce the completion of our first deal through the fund utilising Henley’s significant industry expertise.
“With growing demand in the supported living sector, there is a significant need and market opportunity, matched with increasing institutional interest in the space. We offer these institutional investors access to long-term inflation linked secure and sustainable returns, as well as providing much needed homes for vulnerable adults, making a positive difference to people and communities.”