The Universities Superannuation Scheme (USS) has launched Sparrow Shared Ownership with the acquisition of over 3,000 shared ownership homes from Blackstone and Regis Group’s Sage Homes.
The £405million transaction is the largest acquisition of a portfolio of shared ownership homes since the shared ownership scheme was created in 1990.
David Avery, chair of Sparrow Shared Ownership, said: “The launch of Sparrow Shared Ownership is an exciting moment for the UK’s shared ownership sector. Thanks to this significant investment of patient, long-term capital from the UK’s largest private pension fund, Sparrow Shared Ownership starts life with more than 3,000 high-quality shared ownership homes that are helping thousands of people across the country onto the housing ladder. Our number one focus from day one is on our residents, and we will be working with Sage Homes to ensure a smooth transition of management services.”
James Seppala, head of real estate Europe, Blackstone, said: “Through Sage Homes, which was established in 2017, Blackstone has been the largest provider of newly built affordable housing in the country for the last three years. By deploying capital to fund the development of new homes, we are proud to have created an institutional grade portfolio which has, in turn, attracted more long-term institutional capital into the sector. This transaction will allow us to continue to invest capital into Sage Homes to help alleviate the structural undersupply of housing across the U.K.”
Alison Thain, chair of Sage Homes, said: “This sale of a portfolio of shared ownership properties is an endorsement of Sage Homes’ strategy. Several years ago, we started on a journey to attract increasing amounts of institutional investment and capital into the sector. For the last three years Sage has been the largest provider of new affordable homes in England and this investment proves our model, enabling continued growth and delivery of the homes that the country needs.”
Eamon Ray, head of private credit and alternative income at USS, said: “Sparrow Shared Ownership will provide further capital into the UK shared ownership sector, and we look forward to supporting the Sparrow team in delivering on their vision for the organisation. This investment allows USS to use its long-term capital to support the multi-decade nature of Sparrow’s business plan whilst supporting the UK social housing sector.”
With the support of Sage Homes, Sparrow Shared Ownership aims to take over the management and operational responsibilities of the portfolio. Sage Homes will continue to manage the portfolio’s customers in the meantime.
Sage Homes, England’s largest provider of newly built affordable homes, was created in 2017 via a joint venture between Blackstone and Regis. The companies have to date committed around £3.7billion to fund the development of 22,600 affordable rent and shared ownership homes, of which over 17,000 have been delivered to date.
