Sage Homes, a joint venture established by funds managed by Blackstone Inc. and Regis Group plc, has announced the sale of over 3,000 shared-ownership homes across 250 sites to Universities Superannuation Scheme Limited (USSL). This transaction, valued at £405 million (approximately $519 million), marks the largest acquisition of a shared ownership portfolio since 1990, showcasing a substantial investment by one of the UK’s most prominent institutional investors.
Sage Homes was founded in 2017 through the partnership between Blackstone and Regis. The company has invested around £3.7 billion to develop 22,600 homes, encompassing both affordable rent and shared ownership units, with over 17,000 homes completed to date.
James Seppala, Head of Real Estate Europe at Blackstone, expressed pride in the creation of an institutional-grade portfolio that has attracted long-term institutional capital to the sector. He emphasized that this transaction will allow Blackstone to continue investing in Sage Homes, aiming to alleviate the structural shortage of housing across the UK.
Eamon Ray, Head of Private Credit and Alternative Income at USS, highlighted that this investment will provide further capital for the UK shared ownership sector. USS, as the sole trustee for the Universities Superannuation Scheme, is excited to support Sparrow Shared Ownership (the new entity formed after the acquisition) in achieving its vision. This investment allows USS to utilize its long-term capital to support the multi-decade nature of Sparrow’s business plan while contributing to the UK’s social housing sector.
This deal underscores the increasing interest from institutional investors in the UK’s affordable housing sector. It signifies a shift towards long-term investments in this market, driven by the persistent demand for affordable housing options.
In other news related to Blackstone, the company is exploring options for Clarion Events, including a potential sale that could value the business at up to $2.6 billion. This development adds to Blackstone’s recent activity in the real estate and event management sectors.
