Global investor Sixth Street has formed a strategic partnership with HSPG to invest over £1bn into Park Properties Housing Association (PPHA), to accelerate the development of affordable housing across the UK.
Sixth Street will provide the majority of the equity capital for partnership with the social and affordable housing providers, while investor HSPG will lead the strategic direction, asset management and growth of PPHA’s platform.
Founded in 2020, PPHA is a large for-profit registered housing provider with a contracted pipeline of 1,100 homes, and more that 4,000 new homes identified for addition to its growing portfolio.
The cash will be used to provide high-quality, new-build homes and sustainable communities across a range of tenures, including affordable rent, social rent, shared ownership and grant-supported property in high-demand areas.
The JV said the partnership brings together Sixth Street’s London-based real estate team and long-term institutional capital with HSPG’s expertise in affordable housing, expanding PPHA’s capacity to provide affordable housing at scale.
Giulio Passanisi, partner and head of European real estate at Sixth Street, said the investment marked a significant “expansion of Sixth Street’s ongoing commitment to the UK residential market and aligns with our long-dated, patient capital investment model”.
Passanisi added: “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 up PPHA and accelerate the delivery of high-quality, purpose-built affordable homes that will help strengthen surrounding communities.”
HSPG chief executive Guy Horne said: “This partnership marks a significant step in scaling up 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.”
In October, Sixth Street teamed up with London and South East industrial manager Clipstone Investment Management to launch a joint venture to invest in multi-let industrial assets.
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.
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