UK AFFORDABLE HOUSING


UK AFFORDABLE HOUSING

  • Funding Affordable Homes SICAV SIF S.A. (FAH)
  • Social impact investment in UK government regulated housing
  • Private fund structure regulated by CSSF in Luxemburg
  • Close partnership with housing associations (HAs) and Local Authorities (LAs)
  • Diverse portfolio of freehold residential properties generating an attractive and inflation protected yield underpinned by inflationlinked leases
  • Target return 8%+ IRR with potential further upside on exit
  • Low correlation to the UK housing market
  • Current and near-term assets of £100m+ built up since launch in September 2015 with a further pipeline of £300m+
  • Delivered by a proven team leveraging decades of network and experience
  • Acquisition and lease of homes to HAs and LAs on long term contracts (25-30 years in duration), with steady income and a zero-default record.
Structure
Luxembourg SICAV SIF S.A.
Regulator
Commission de Surveillance du Secteur Financier (CSSF)
Advisor
SHA Housing Ltd, London
AIFM
Fuchs Asset Management S.A.,Luxembourg
Property Surveyor
Jones Lang LaSalle (JLL), London
Auditor
Price water house Coopers Société Coopérative (PwC), Luxembourg
Social Impact Advisor
The Good Economy Partnership Limited, London
Target Return
8%+ IRR
Fees
1.25% p.a. Carried interest: 15% over 6% hurdle with high watermark and partial clawback, all payable in FAH shares
Exit
IPO to be sought in late 2018, backstopped by a continuation vote in late 2020
Currency
GBP
Leverage
Current: Approximately 15%, Target: 50%
Dividend Policy
Retain earnings, 5% post stabilization