A housing association is going into the business of becoming a private landlord.
Thames Valley Housing has set up a profit-making subsidiary, Fizzy Living, that will buy 1,000 homes over the next three years for private rent to young professionals at market prices.
The association, which owns or manages 14,000 homes in London and the south-east, has invested £30m into the brand and will initially buy 63 one- and two-bed apartments in Epsom, Surrey.
It plans to attract a further £50m of equity from institutions such as pension funds and smaller private investors, to buy blocks of between 60 and 150 units. It will also borrow £120m from banks.
The aim is for Fizzy Living to develop into a £15m a year turnover business, with profits ploughed back into the association’s core activity of providing affordable homes.
Geeta Nanda, chief executive of TVH, said: “There has been a lot of interest from investors. They are particularly interested in our management skills.”
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