Macfarlanes advises Legal & General on securing GBP265m debt facility for Build to Rent Fund

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Macfarlanes has advised long-standing client Legal & General on the provision of a GBP265 million debt facility for its Build to Rent Fund (BTR Fund) with a lender club including Lloyds, NatWest and ING.

The facilities include a GBP150 million term facility and a GBP115 million revolving credit facility, which will predominantly be used to refinance GBP220 million of existing development facilities, representing a significant milestone for the BTR Fund as it matures into an investment fund.
The GBP2 billion fund has over 5,000 homes across 15 schemes in the UK, with the financing encompassing eight of those assets in Salford, Manchester, Bath, Walthamstow, Bristol, Leeds, and Birmingham, as part of Legal & General’s continued commitment to the growing strength of the regions across the UK.

The Macfarlanes team was led by finance partner Jat Bains with assistance from senior solicitor Chris Barrett and solicitor Yagmur Yarar. Real estate advice came from partner Anthony Burnett-Scott with assistance from senior solicitor Laurie Fletcher and solicitor Gwen Llewelyn Atkinson and construction advice was provided by partner Angus Dawson and solicitor Louisa McMurdo. Tax expertise was provided by tax and reward partner James McCredie and senior counsel Kirsten Prichard Jones. Investment management advice was provided by partner Alex Amos, senior solicitor Harriet Miller and solicitor Emma Garnham.
Bains says: “Having assisted the BTR Fund with several development facilities in recent years, it’s great to see those projects reach completion and become refinanced with this new investment facility. Residential rental assets have generally held up really well during the pandemic and this deal is a further affirmation of the strength of this sector.”