Sixth Street and HSPG to invest €1.1b in UK affordable housing

Global investor Sixth Street has partnered with social housing investor HSPG to invest in Park Properties Housing Association (PPHA), with Sixth Street providing most of the funding.

Housing

PPHA plans to invest over £1 bn (€1.17 bn) to build high-quality, sustainable, affordable homes across the UK, including Affordable Rent, Social Rent, Shared Ownership, and Grant-Led Additionality properties. The partnership aims to deliver lasting positive impact through rigorous building standards. PPHA, already one of the UK's largest For-Profit Registered Providers with a strong pipeline of homes, will leverage Sixth Street's capital and HSPG's expertise to significantly expand its affordable housing delivery.

Giulio Passanisi, partner and head of European Real Estate at Sixth Street, said: “This investment marks a significant expansion of Sixth Street’s ongoing commitment to the UK residential market and aligns with our long-dated, patient capital investment model. At Sixth Street, we are dedicated to playing our part in making the UK more affordable by addressing the critical shortage of quality housing. With HSPG’s specialist expertise and in partnership with UK homebuilders, we feel well-positioned to scale PPHA and accelerate the delivery of high-quality, purpose-built affordable homes that will help strengthen surrounding communities.”

Guy Horne, CEO of HSPG, added: “This partnership marks a significant step in scaling PPHA as a leading platform for affordable housing delivery. Institutional capital, deployed through For-Profit Registered Providers such as PPHA, is playing an increasingly important role in addressing the imbalance of affordable homes in the UK. Through PPHA, we are building a scaled platform to deliver high-quality, affordable homes, with a clear focus on service delivery, customer outcomes and long-term performance.”

Since being acquired by HSPG in 2020, PPHA has delivered over 2,000 affordable homes worth more than £700 mln (€819 mln).

As PPHA enters a new growth phase, it will launch a new brand to reflect its stronger market position and broader goals. While previously focused on the South East and West Midlands, the new partnership will expand this activity nationwide.

Sixth Street received advice from Simpson Thacher & Bartlett, Trowers & Hamlins, EY, Savills, and JLL. HSPG was advised by Travers Smith, Alvarez & Marsal, and Axis Capital Advisors. Winckworth Sherwood advised PPHA.