Investor Residential Secure Income (ReSI) has exchanged contracts to buy 478 retirement homes from housing association Places for People for £40.2m.

The deal has already completed on 421 of the properties, with the remainder expected within three months.

The portfolio consists primarily of one-bedroom flats across 284 purpose-built retirement schemes, with over 93% in southern England, including in the Greater London area. Properties are held on a long leasehold basis, with an average term of 92 years.

Offering independent living, the homes do not include the provision of care services. They will continue to be managed by Girlings, part of the Places for People group, which is responsible for the day-to-day management, rent collection and maintenance.

Ben Fry, managing director of ReSI Capital Management, the investor’s fund manager, said: ‘The portfolio offers a later-life independent living solution with security of tenure but without the hassles of ownership, and serves a fast growing, yet hugely fragmented and underserved, sector of the market.

‘Our strategy continues to be focused on delivering a secure, long-term income stream to shareholders. We are making good progress in building a high-quality portfolio that meets these disciplined investment criteria, and expect this progress to continue.’

To date ReSI has invested £215m in 2,414 residential units.