Blackstone has completed the sale of a property portfolio to the Universities Superannuation Scheme (USS), a pension fund for academia, in a transaction valued at GBP 405 million (USD 519 million). USS, which manages assets exceeding GBP 75 billion (USD 96 billion), acquired 3,000 homes as part of the deal. This strategic acquisition is expected to bolster USS's real estate holdings, further diversifying its investment portfolio.Shared ownership allows people to buy part of a property, with the option to buy furthermore, later on. Major investors are increasingly focusing on UK housing due to high demand and limited supply.
Blackstone, a leading private equity firm, announced on Tuesday that it has sold 3,000 shared-ownership homes to the Universities Superannuation Scheme (USS), the largest private pension fund in the UK. The deal is valued at GBP 405 million (USD 519 million) and highlights the increasing involvement of major financial players in the British housing market.
The Universities Superannuation Scheme (USS), which manages over GBP 75 billion (USD 96 billion) in assets, acquired the housing portfolio from Blackstone's Sage Homes-a housing venture established in 2017 in collaboration with investor Regis. The sale marks one of the largest transactions in the UK's housing sector this year and underscores the growing trend of large institutional investors putting their money into British real estate.
This deal follows closely on the heels of another significant transaction by Blackstone. Just last month, the company agreed to purchase 1,750 rental homes from the UK housebuilder Vistry. These moves are part of a broader strategy by major investors who see long-term potential in the UK's housing market, where demand continues to exceed supply. This trend is further encouraged by the country's Labour government, which has pledged to increase housing availability.
Shared ownership schemes, like those in the sold portfolio, are designed to make homeownership more accessible. They allow people to purchase a portion of a property initially, with the option to buy additional shares over time until they own the entire home.
James Seppala, Blackstone's Head of Real Estate in Europe, emphasised the importance of the sale, noting that it has helped create a high-quality, institutional-grade portfolio. He added that this has, in turn, attracted more long-term institutional capital into the sector. While Blackstone has not specified how it will use the proceeds from the sale, the firm indicated that it will continue to invest in Sage Homes, signalling ongoing interest in the UK housing market.
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