Partner profile – Lets for Life and Storm Property

On 12 September 2024, Assetz Exchange successfully launched #188 – Longley Crescent, Sheffield, the third of four properties being acquired as part of a corporate transaction with developer Storm Property. All properties included in this transaction, which also includes #187, Halifax Road and #185 – Hilltop Rise currently yield in excess of 7.1% net to investors on leases that rise annually in line with inflation.

These acquisitions are particularly exciting as it marks the beginning of our partnership with Lets for Life, a respected registered provider dedicated to revolutionising housing for disabled individuals, autistic people, and those with learning disabilities. Their mission is to ensure these individuals have the opportunity to live happier, more independent, and connected lives.

Catherine Bennett, CEO of Lets for Life, explained that this portfolio of properties originated from a small care provider that operated in and around Sheffield. They were originally founded by a family whose daughter had complex care needs and frustrated by the lack of suitable care options, the parents converted their family home into supported living. This provided high-quality care for their daughter but also for others in Sheffield with similar needs.

The care provider gradually grew to include five properties, fulfilling a need for high-quality homes for disabled individuals in Sheffield. However, the properties were eventually sold as part of the founder’ retirement exit strategy.

For investors, one of the main attractions of these new properties is the 15-year Full-Repairing and Insuring (FRI) leases signed by Lets for Life. Catherine noted that this is an unusual move for Lets for Life, as they typically prefer shorter leases. However, Optimo, the care provider, has committed to covering void periods under their contract with Lets for Life, which aligns with the tenancy term. The strong demand for specialist housing in Sheffield, coupled with a solid relationship with local commissioners, has motivated Optimo to secure these places for as long as possible.

Catherine also mentioned that Local Authority Commissioners are now aware of, and have budgeted for, the increased costs of providing property following the Bank of England’s rate rises. They are eager to address the backlog in demand for homes for vulnerable individuals.

Alongside the new partnership with Lets for Life, the new properties demonstrate our continued relationship with property developers Storm Property, with whom we previously partnered with to bring #184 – Park Road, on which we have previously published a case study. The relationship with Storm has multiple benefits: they agreed to purchase the entire portfolio up front, selling on to us on a timeframe that suits our investors, and giving us a steady pipeline.  They are also a trusted partner who undertake all development work, at their own risk, which fits into our strategic platform decision to minimise development risk taken by our investors.

We look forward to collaborating with Lets for Life and Storm Property in the coming months to provide excellent housing for vulnerable people while delivering long-term, stable income for our investors. If you would like to browse these properties or other similar properties please explore our property Exchange.