Winckworth Sherwood has advised Park Properties Housing Association on a substantial investment from Sixth Street that will see it invest more than £1bn in affordable housing delivery across the UK.
Park Properties Housing Association (PPHA) is a for-profit registered provider of social housing operating in partnership with HSPG, a leading social and affordable housing investor. Sixth Street will provide equity capital, with HSPG continuing to lead the strategic direction, asset management and growth of PPHA’s platform alongside the company’s existing management team.
PPHA intends to invest more than £1 billion to deliver high-quality, new-build homes and sustainable communities, establishing a new benchmark for affordable living. The homes will encompass all affordable tenures, including affordable rent, social rent, shared ownership in areas of greatest need. The delivery of these homes reflects PPHA’s longstanding commitment to high-quality construction and rigorous building standards, aimed at delivering lasting positive impact for customers and the communities they live in.
PPHA is one of the UK’s largest for-profit registered providers, with a contracted pipeline of 1,100 homes and a further 4,000 new homes identified for addition to its growing portfolio. The partnership brings together Sixth Street’s London-based real estate team and long-term institutional capital with HSPG’s specialist expertise in affordable housing, significantly expanding PPHA’s capacity to deliver at scale.
The Winckworth Sherwood team was led by Partner Matt Cowen and supported by Rebecca Jason, Koula Lemos, Richard Tinham, Chris Garrett and Jon Woodall, who provided regulatory, governance, funding and tax advice surrounding the investment.
Matt Cowen said: “For-profit registered providers play a vital role in the development and management of affordable homes across the UK. We are delighted to have played a key role in this significant investment by Sixth Street and look forward to the growth of PPHA’s activities as a result of this market leading transaction.
Giulio Passanisi, Partner and Head of European Real Estate at Sixth Street, said: “This investment marks a significant expansion of Sixth Street’s ongoing commitment to the UK residential market and aligns with our long-dated, patient capital investment model. At Sixth Street, we are dedicated to playing our part in making the UK more affordable by addressing the critical shortage of quality housing. With HSPG’s specialist expertise and in partnership with UK homebuilders, we feel well-positioned to scale PPHA and accelerate the delivery of high-quality, purpose-built affordable homes that will help strengthen surrounding communities.”
Guy Horne, CEO of HSPG, said: “This partnership marks a significant step in scaling PPHA as a leading platform for affordable housing delivery. Institutional capital, deployed through for-profit registered providers such as PPHA, is playing an increasingly important role in addressing the imbalance of affordable homes in the UK. Through PPHA, we are building a scaled platform to deliver high-quality affordable homes, with a clear focus on service delivery, customer outcomes and long-term performance.”
Sixth Street was advised by Simpson Thacher & Bartlett, Trowers & Hamlins, EY, Savills and JLL. HSPG was advised by Travers Smith, Alvarez & Marsal and Axis Capital Advisors. PPHA was advised by Winckworth Sherwood.