Funding Affordable Homes acquires London Docklands affordable housing development
Funding Affordable Homes (FAH), a social impact company which invests in UK affordable housing, has acquired the Island Point development south of Canary Wharf in London’s Docklands from City Pride Ltd for £28.5 million.
Island Point, located close to the River Thames at 443-451 Westferry Road, comprises 173 affordable homes, made up of 109 social rented, 33 Affordable rented and 31 shared ownership homes. The development, which was designed by Squire & Partners, was carried out by Chalegrove Properties, which was appointed by City Pride Ltd under a development management agreement.
The homes are arranged in five blocks and consist of a mix of one-to-five bed apartments, maisonettes and houses with ancillary spaces, including a community pavilion, extensive external landscaped areas and children play areas, scooter/cycle stores, a basement car park and external disability parking.
The homes will be managed by Poplar HARCA, a local housing association, which has entered into a management lease with FAH, a fund whose property adviser is Edmond de Rothschild Real Estate Investment Management.
Paul Munday, fund manager of FAH, said: “This acquisition enables us to support the new build of affordable housing in Tower Hamlets, one of London’s poorest boroughs, where there is an acute need for more affordable housing.
“Island Point is a high-quality and well-located development, providing a good mix of tenures and bedroom sizes. Significantly, two thirds of the homes are social rent and benefit those on the lowest incomes.
“Poplar HARCA is a well-established housing association and will be an excellent housing management partner for us”.
James Whidborne, head of residential fund management UK at Edmond de Rothschild Real Estate Investment Management, said: “Island Point is a great example of private capital having genuine social impact. The asset is a milestone for Funding Affordable Homes, representing close to 20% of its rental income and providing a solid platform from which we now aim to raise additional capital. Given the merits of the sector from both a social impact and returns perspective, our aspirations are to now grow the fund to in excess of £500 million within two years”.
FAH aims to promote the delivery of new affordable housing, while providing investors with long and secure income streams and capital appreciation. It has already acquired, or committed to acquire, around £170 million of socially-beneficial housing projects in London, the east and south of England and other parts of the country. It typically provides forward funding to enable new properties to be built and managed by established Registered Providers of housing, but it also owns and utilises its own housing association, Funding Affordable Homes Housing Association.
Current investors include Big Society Capital, which improves the lives of people in the UK by connecting social investment to social enterprises and charities to create a greater social impact, and the Joseph Rowntree Foundation, an independent Foundation, working to inspire social change through research, policy and practice.