Pan-European institutional investor Patron Capital has teamed up with Oak Housing to launch a £ 100million (€ 115.5million) UK affordable housing joint venture.
The company, which is backed by shareholders of Oak Housing Bmor and T&B Capital, intends to target assets worth between £ 10m and £ 20m each, and will initially target properties in London.
The company’s strategy is to acquire and convert suitable properties to meet the general needs of the homeless, temporary housing, key workers and condominium opportunities.
In a joint statement, Patron Capital and Oak Housing said the newly formed company completed its first transaction with the acquisition of Kings Paget Hotel in West Drayton, Hillingdon.
The former 14,000 square foot hotel was acquired for £ 4million and will be refurbished and reused for use as high quality affordable accommodation by partners in the public sector.
Keith Breslauer, Managing Director of Patron Capital, said: “Social purpose is a central pillar of Patron Capital, both in the way we do business and in our philanthropic efforts, so this joint venture with Oak Housing was a natural next step for us.
“With more than 84,000 households in temporary accommodation in England and 1 in 53 people in London affected by homelessness, it has never been more important to align our business activity with the needs of those around us, and we look forward to working with Oak as we build our portfolio in this space.
Lanek Banga, CEO of Oak Housing, said: “The past 12 months have been one of the most challenging environments the industry has seen in generations, and during that time it has become clear to us that t high quality affordable housing is about creating safe and healthy communities.
“It inspired us to do more. To this end, we are delighted to partner with Patron Capital to increase our portfolio of affordable housing across the country.
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