Vistry Group has agreed partnerships with Leaf Living and Sage Homes for almost 3,000 private and affordable rental homes. The deal has a GDV of £819million and will see Vistry supply 2,915 units in total to the two companies.
Vistry will build the homes across 70 of its developments and will start construction this year with the majority being delivered by 2025. 1,522 units will be delivered to Leaf Living for the private rented sector, while Sage Homes, the largest new build affordable homes provider in England, will receive 1,393 units for affordable homes for rent and shared ownership.
Vistry Group CEO, Greg Fitzgerald, said the deal would accelerate the developer’s plans to combine its Partnerships and housebuilding operations and also aligns with Vistry’s strategy to pre-sell close to two-thirds of units across the company. The agreement marks one of the largest residential investment transactions to date.
Vistry and Sage have signalled their intent to utilise grant funding from Homes England as part of the Affordable Homes Programme to enable the initial part of the delivery, with Vistry expecting an initial £160million this year, followed by payments in stages across the development period.
Vistry Group CEO, Greg Fitzgerald, said: “Through our unique Partnerships model, Vistry is maintaining the momentum of delivery of much-needed affordable housing across the UK.”
“Our strategy gives the group significantly greater visibility on earnings than traditional house builders and this new partnership and others to follow, will help us drive towards our medium-term targets and the delivery of £1billion of shareholder distributions over the next three years.”
