Institutional investment in the housing sector
The appetite of institutional investors for the housing sector is finally growing, attracted by innovative new models and assurance in steady inflation-linked returns. Over the past year, a growing number of schemes have secured investment, some of which are listed below, injecting some much needed confidence into this sector.
In January 2013, Genesis Housing Association sold a 400-home, private-rented portfolio to M&G Investments on a sale and leaseback basis for £125m in a deal that has widely been seen as the turning point in the involvement of institutional investors in this market. Under the sale and leaseback arrangements, Genesis will manage the properties for the 35-year leaseback period and will make inflation-linked payments to M&G. At the end of the leaseback period, the properties are retained by M&G, which has secured a 160-year lease. Genesis will use the £125m to provide up to 3,000 new homes including affordable and shared-ownership homes.
Legal and General (L&G) recently made a debt facility available to two of Hyde Group’s subsidiaries (£61m to Hyde Southbank Homes and £41m to Hillside Housing Trust) — its first deal in the housing sector. The loans have been made on a non-recourse basis at a fixed rate for the 15-year term. L&G has been vocal over recent months in its desire to provide long-term bespoke funding solutions for the housing association sector and is adopting a ‘tell us what you want to achieve and we’ll see how far we can help you’ approach, which is refreshing…
If you are registered and logged in to the site, click on the link below to read the rest of the Nabarro briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Nabarro
News from The Lawyer
Briefings from Nabarro
Choosing the right adjudicator to decide your dispute can be one of the most important and difficult aspects of the adjudication process.
In this case, the court considered a payment of funds into court as an alternative remedy to specific performance to deliver security documentation.
Analysis from The Lawyer
Nabarro senior partner and self-confessed “IT geek” Graham Stedman is heralding a major set of investments in technology ahead of the firm’s move to 125 London Wall this year.
Clients are more willing to bring claims against professional service providers but the risk to defendants is not as dramatic as it might seem