Poseidon Capital Management (PCM) a London based real estate investor and asset manager has acquired a majority stake in one of Birmingham’s leading social housing providers ‘HQH Group’.
HQH Group (HQH) is one of the biggest social housing providers in the West Midlands, with a particular on supported living. HQH’s portfolio comprises of self-contained studios, shared houses and support centres that cater to the needs of their vulnerable tenants. HQH’s senior leadership team’s experience is deeply rooted within property services, asset management and strategic consulting and care. The organisation’s core vision is to ‘Prioritise Those In Need’.
HQH’s values are to provide High Quality Housing, High Quality Support and High Quality Service to their vulnerable tenants and key stakeholders who include government bodies and charitable organisations such as; Birmingham City Council, Ministry of Justice, Department for Work & Pensions, Dudley Council, Sandwell Council, Coventry Council, National Probation Service, Crisis, SIFA, St Basils, Birmingham Minds, NACRO and more.
“Our investment in the social housing sector is testament to our commitment of addressing the structural deficit and the under supply of great quality affordable accommodation within the sector. HQH are making great strides to improve the standard of homes for individuals requiring safe, secure, and decent accommodation. We are thrilled to be working directly with HQH to identify new avenues for growth within the different subcategories of social housing in the years ahead.”
Hassan Saeed, Managing Partner Poseidon Capital Management.
HQH Group’s portfolio comprises 80% of self- contained units that provide a best-in-class support environment for vulnerable residents. By engaging local property owners and developers, they have been able to grow rapidly in a small space of time and improve the standard of accommodation from the grass roots level as well as, improve the support environment having a direct impact on the number of successful move-on cases (whereby the individual can sustain an independent tenancy) the organisation has documented in comparison to many other providers in the sector.
Poseidon capital management is an investment house that seeks to identify key growth segments in the UK property market and explore innovative methods of facilitating private capital into market segments that may have traditionally been limited to private investors.
Research by Mencap in 2018 predicted that demand for housing for people with complex support needs will rise by 35 per cent by 2030, as the government continues its drive towards community-based accommodation to save money and improve resident outcomes.
Supported housing is considerably cheaper than care in institutional settings. Mencap says there is an estimated £1,931 average saving per person per week compared with in-patient care and an estimated £191 average saving per person per week compared with registered care.
The tragedy is that, despite this demand, the growth in housing stock in this sector has been unable to keep pace, due in part to limited government grant funding and in the context of a wider housing crisis.
Against this backdrop, the government has been unable to meet its targets for moving vulnerable adults back into communities. (Inside Housing, 2019)
PCM aim to alleviate pressures on the government and fill the funding gap by facilitating the use of private capital into this sector which has also seen strong investment returns throughout the COVID-19 pandemic with 100% of rents being collected as rental income is government backed providing a low risk to investors. PCM is due to launch their Capital Partner Fund aimed at providing approved investors with an opportunity to deploy capital into a syndicated investment model to help further fuel the creation of purpose build supported housing accommodation in line with growing demand.
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