Homes England joins investors in property fund

Housing agency Homes England has committed funds to the initial close of the Newstead SME Real Estate Lending Fund (RELF), alongside public and private investors.

The agency has joined with Greater Manchester Pension Fund, listed wealth manager Mattioli Woods and other private institutional investors to commit a combined £80m to the fund, which will be managed by specialist fund manager Newstead Capital.

With an intention to grow the fund to £300m through subsequent capital raises, the fund aims to deliver over £1bn of funding over its life and will help to meet Homes England’s mission to accelerate change in the housing market by bringing in new sources of institutional capital and diversifying lending channels to the SME housebuilding sector.

“This partnership is our latest intervention to offer SME housebuilders a route to finance that may otherwise be unavailable through traditional means,” said Peter Denton, chief executive of Homes England.

“Introducing new sources of institutional capital to support SME house builders is a priority for Homes England and our cornerstone investment in this fund signals government support for accessible and competitive finance to meet the needs of SME developers across the country.”