Purpose

Change request to deploy the outstanding funding from the Social Housing Accelerator Fund via an alternative mechanism to accelerate social and affordable housing delivery

Decision

(1)   The investment of up to £12,285,399 into a Real Estate Investment Trust (REIT) for a new asset class for joint holding alongside the Local Government Pension Scheme (LGPS) Central, with the approved amount available to meet associated advisory, fund establishment and implementation costs, to unlock a minimum of 283 social rent homes be approved.

(2)   The Director of Commercial and Investment to determine the appropriate option and negotiate, agree, finalise and authorise WMCA to enter into any agreements required to implement Option A or B as appropriate be approved.

Option (A): Direct purchase by WMCA of units in an existing REIT, with a new series of units that will ringfence investments within the WMCA.

Option (B): Creation of a limited partnership with the LGPS Central, which will then in turn purchase new units in the REIT.

(3)   Completion and review of due diligence on the preferred fund manager. This includes confirmation that the appointed manager possesses the necessary financial, technical and operational capability to deliver the Fund's objectives be approved.