21st Jun 2018 09:40
LONDON (Alliance News) - Residential Secure Income PLC on Thursday said it agreed to buy a freehold residential building in Luton, north of London, for GBP21.3 million.
The investment company said the property benefits from a lease to a local authority and provides housing under the local authority's statutory obligations. The average remaining term for the leases is 7.3 years, but Residential Secure Income said it will seek to extend or renew in due course.
The transaction is expected to be completed by the end of June, from when it will immediately be income producing for the company.
Following completion of this acquisition, Residential Secure Income will have invested GBP155 million of the proceeds raised at its IPO in assembling a portfolio which now comprises 1,772 residential units.
"By investing capital in good quality, modern housing, we can help local authorities meet their obligations to provide accommodation without relying on expensive and short-tenure solutions such as hotels or hostels," said fund manager Ben Fry.
The stock was trading 1.1% higher at 95.00 pence per share on Thursday.
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