A new offering on the London Stock Exchange (LSE) is targeting £250 million (CAD $435 million) for supported housing ventures in the United Kingdom. Responsible Housing REIT has launched the initial public offering (IPO) with plans to acquire and develop a portfolio that will both generate sustainable investment returns and pioneer an alternative model for financing and delivering affordable, assisted housing.

“Responsible Housing REIT offers the opportunity to invest in a much-needed social resource where demand is on an upward trajectory,” says the REIT’s chair, Robin Minter Kemp. “This will be an impact-led strategy with a peer leading ESG framework that also offers an attractive dividend underpinned by inflation-linked income supported by sustainable rents.”

Three arms of BMO Asset Management will act as the investment, asset and property managers for the REIT. They promise a “fit-for-purpose” portfolio to accommodate a wide range of potential tenants including: adults and youth with learning disabilities, mental health issues, physical disabilities or addictions; the elderly; and other vulnerable individuals requiring long-term support or temporary housing.

Guy Glover, lead manager with BMO, describes the new REIT as “a new and compelling proposition for investors” that will help UK local governments fulfill their statutory obligation to provide housing for tenants in need.

“We have been engaging extensively with stakeholders in the supported housing community,” he reports. “The UK faces a shortage of suitable accommodation, underpinning our conviction in a strategy delivering a balance between all stakeholders to create a truly sustainable model.”