Legal & General (L&G) has agreed a GBP40 million, 20 year debt facility to Rooftop Housing Group to support the delivery of up to 900 affordable homes by 2018.
Formed in May 1993 to accept a transfer of 4,020 homes from Wychavon District Council in South Worcestershire, the principal activity of Rooftop Housing Group is to provide rented housing accommodation for people in need of affordable housing. As at April 2014, the group now provides over 6,150 homes and has an annual turnover of GBP31 million.
Operating across South Worcestershire and Gloucestershire, today the group works more widely providing staff accommodation for hospital trusts and has also partnered with the ExtraCare Charitable Trust to offer two ExtraCare retirement schemes, in Yates Court, Evesham and St. Oswald’s Village, Gloucester.
Alex Gipson, lending manager at Legal & General, says: “Through both discussing the aspirations of the group with the executive team and visiting some of their historic and current developments, there were a number of strategic areas which clearly resonated with L&G’s own views. Providing quality accommodation for those in retirement and promoting the long terms benefits of sustainable development are key interests of both organisations and an excellent base upon which to commence an on-going relationship.”
Caroline Dykes, finance director at Rooftop Housing Group, says: “With a shared view on the role we can both play in helping to provide affordable housing and support people through all stages of their life cycle including retirement, as well as a progressive attitude to green development, we look forward to working closely with L&G over the next 20 years as we bring forward a significant development pipeline. Additionally, by staggering the drawdown over the period through to August 2015, the loan takes a much more flexible and innovative approach to supporting our cash flow requirements than standard solutions in the market.”
Other recent social housing deals concluded by L&G have included a GBP50 million, 40 year debt facility to Housing Solutions; a GBP102 million, 15 year debt facility to The Hyde Group; and a GBP40 million, 25 year debt facility to Thames Valley Housing Association. It also recently secured a portfolio of over 4,000 housing units, let to Places for People on a new 50 year lease, for GBP252 million.