December 5 2013 Latest news:
Kay Atwal, Chief Reporter
Saturday, January 19, 2013
Housing association Genesis has signed a financial arrangement for £125 million with an investment company allowing it to rent 400 private homes.
The deal, with M&G Investments, means Genesis can rent out the properties at the Stratford Halo development at market rental rates over the next 35 years. M&G paid Genesis £125 million for the flats for which the former will receive rent.
Without the deal, Genesis would have had to sell the properties to buy-to-let investors.
The move comes in the wake of a Government report which indicated a need for housing associations to change their financial structure while continuing to provide mixed tenure housing.
The Stratford Halo development, due for completion this year, includes over 700 properties housing a mixture of tenants encompassing affordable rented and shared ownership as well as retail commercial and leisure space. The 43 floor residential tower is based at the main entrance to the Olympic Park and will create a new London landmark.
Jonathan Clarke, Genesis’s Director of Corporate Finance, said: “This transaction is a strategic response providing Genesis with greater investment capacity in the future when the level of public subsidy for new affordable housing is expected to fall further.”
Robert Kerse, Genesis’ Executive Director of Resources, said: “As a regulated and reputable landlord, we will retain the management of these properties so ensuring a professional service and avoiding the problems which can arise under multiple or absentee landlords.”