US investor taking stake in Park Properties Housing Association

Global investment giant Sixth Street has announced a plan to invest £1bn in a for-profit registered provider of social housing in partnership with investor HPSG.

Sixth Street is investing in for-profit provider Park Properties Housing Association (PPHA).

It will provide the majority of the equity capital, with HSPG, which bought PPHA in 2020, will lead the “strategic direction, asset management and growth of PPHA’s platform”.

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Sixth Street manages more than £100bn of assets around the world

Sixth Street, which is based in San Francisco and manages more than £100bn of assets globally, said the investment means PPHA intends to invest £1bn in delivering homes for affordable tenures. These include homes for affordable rent, social rent, shared ownership, and “grant-led additionality”.

PPHA has delivered more than 2,000 homes since 2020. It acquires section 106 properties from large housebuilders and SME developers.

It has been focused on the South-east and West Midlands but Sixth Street said the new investment will help it expand its activity nationwide. PPHA has a contracted pipeline of around 1,100 homes and a further 4,000 new homes identified for addition to its growing portfolio.

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