New company Habiko aims to be self-sustaining within 12 years
Homes England, Muse and the Pension Insurance Corporation have set up a joint venture named Habiko, aimed at delivering 3,000 low-carbon homes for rent over the next 10 to 12 years.
Homes England, Muse and PIC are jointly investing an initial £54m in Habiko to acquire land, secure planning permission, and conduct viability assessments. Habiko will be part owned by each of the three joint venture partners.
All homes delivered by the Habiko JV will be for intermediate rent, with rents set at 20% below the local market rent.
Under the partnership, the Pension Insurance Corporation (PIC), which has invested around £4bn in submarket housing to date, will forward fund the homes and acquire them at the end of the construction period.
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The homes will be built across England “in areas of high demand for this type of housing” and close to employment opportunities.
Habiko aims to be self-sustaining within 12 years, generating revenue to cover ongoing costs without relying on further public funding.
Peter Denton, chief executive of Homes England, said: “Attracting institutional investment into the housing sector is critical to build the new homes the country needs.”
Denton added that “This partnership supports our partners’ objective to deliver low carbon, low energy, affordable homes, bringing together the technical expertise and capability of Muse with the financial capacity of one of the UK’s largest pension fund insurers, cementing PIC as a significant force in delivering affordable housing.”
Tracy Blackwell, CEO of PIC, said: “Meeting the UK’s affordable housing needs is a challenge that is best met through effective collaboration between government, developers, and private investors. Habiko is a great example of public-private partnership, which brings forward thousands of low-carbon, low-energy affordable homes.”
Phil Mayall, managing director at developer and placemaker Muse, said: “The government has set out a bold and ambitious challenge to deliver a significant number of new affordable homes over the next five years.”
Mayall stated that by working with PIC and Homes England: “we can bring together our collective resources and unique experience to deliver thousands of low carbon and low energy homes which, by working alongside our local partners, meet the needs of communities across the country.”
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