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Connell C - LB Mar 2022

Henley Investment Management launches social housing fund

London-based investment management group Henley Investment Management has launched its second fund focused on UK social housing.

Henley Secure Income Property Unit Trust II (SIPUT II) will seek to raise £1 billion over the next three years to invest in the UK social housing sector, focusing on homes for the most vulnerable people in society.

Two local government pension schemes are seed investors in the first close of SIPUT II, with a target first-year funding commitment of £300 million for the open-ended fund and investment objectives of a 5-6% annual dividend and a 6-7% total return.

The fund aims to meet demand for regional residential accommodation for individuals with specialist supported or emergency housing needs. Henley stated that private sector capital is the only realistic option to satisfy demand from local government and public sector charities for new accommodation.

SIPUT II will provide funding for new accommodation and acquire completed and stabilised assets, including those used for specialist supported living, children services, temporary and emergency accommodation and victims of domestic violence.

Henley’s SIPUT I invested £450 million in housing for more than 2,100 vulnerable residents, Henley SIPUT II aims to provide more than 1,000 homes for those in need across all regions in the UK.

Stuart Savidge, fund managing director at Henley Investment Management, said: “SIPUT II will provide secure accommodation for some of the most vulnerable people in society and at the same time generate a strong, inflation-linked income stream for investors. We only see an increase in demand from the public sector for this type of accommodation and bringing additional capital to a world which sees individuals suffering the indignity of living in appropriate accommodation is highly beneficial to society as well.

“The Henley team has deep experience in the specialist supported housing sector, meaning we are well placed to handle the complex asset management challenges which these properties pose at the same time as being adept at managing the needs of investors.”

Ian Rickwood, chief executive of Henley, added: “This is an important step for our SIPUT programme as we deliver investments with impact and purpose as well as income that is secure and protected against inflation. It is an important step for Henley more generally as we continue our journey on building a funds-led business.”

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