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For-profit doubles in size with 325-home stock transfer
A for-profit affordable housing provider has doubled in size after acquiring 325 homes from a shared ownership specialist.
A for-profit affordable housing provider has doubled in size after acquiring 325 homes from a shared ownership specialist #UKhousingAuxesia Homes has acquired the assets of St Arthur Homes, a for-profit provider owned by European property giant Futureal Group. The 325 shared ownership homes are spread across the South of England.
The acquisition brings the total number of homes managed by Auxesia to 637, with plans to deliver a further 1,300 homes by 2030.
St Arthur Homes launched in 2013 and is based in central London. It will continue to operate as an independent registered provider, with one member of staff transferred across to Auxesia under The Transfer of Undertakings (Protection of Employment) Regulations 2006.
Inside Housing Living has asked Futureal Group for more details about its plan for St Arthur Homes. The for-profit could acquire a new portfolio, for example, or Futureal Group could sell off the shell company to a new owner.
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Auxesia said the acquisition helps to improve its financial viability. It brought in a new lender as part of the transfer and last year achieved an equity injection to improve the finances of the business. In October, Auxesia secured a £25m loan from HSBC to support its growth plans.
Auxesia is a privately funded for-profit provider operating across the North of England.
The landlord owns shared ownership, affordable rent and social rent homes for key workers and military personnel. It delivers homes through partnerships with house builders, local authorities and other registered providers, with a strong focus on Section 106 acquisitions.
Last year Auxesia pivoted to a reinvestment-led model, in which homes are aggregated and then sold to registered provider partners. The capital is reinvested in securing new affordable homes.
Claire Donnelly, interim chief executive officer at Auxesia Homes, said: “This is an incredibly important milestone for Auxesia – the stock transfer demonstrates our investors’ commitment to the sector and helps facilitate our trading strategy moving forward.
“This deal is now complete and we have begun the process of welcoming the residents of the properties into the Auxesia family.”
Last year, Auxesia reported a 53% fall in its turnover due to low shared ownership sales. The for-profit’s turnover stood at £4.7m for the year to December 2024, down from £10.1m the previous year.
By contrast, the new stock transfer with St Arthur is not dependent on selling new build homes to customers, since the shared ownership homes are already occupied.
Phil Martin, interim chief financial officer at Auxesia Homes, said turnover was lower last year for a number of reasons, including a reduction in the number of shared ownership sales and the sale of 89 homes to a housing association.
Auxesia completed 30 shared ownership sales in 2024, while three leaseholders chose to fully staircase during the year.
Mr Martin said: “It should also be noted that 2023 results were based on a 15-month period and 2024 was a 12-month period.
“In addition, there was a reduction in shared ownership sales, followed on from lower exchanges during 2023 when the business was focused on regulatory recovery rather than growth.”
The for-profit also appointed a new interim chief executive officer and chief financial officer to help drive its next growth phase.
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