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Social landlord secures £25m L&G loan

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Social landlord secures £25m L&G loan

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Published by Max Salsbury for 24dash.com in Housing and also in Finance

Social landlord secures 25m L&G loan Social landlord secures 25m L&G loan

Image: Housing via Shutterstock

Legal & General has announced that it has agreed a £25 million, 40-year loan to Adactus Housing Group, signaling its sixth direct investment deal in the social housing sector.

The loan is secured against a portfolio of existing assets and will be used to refinance an existing short term loan, which is maturing this year, as well as to provide Adactus with further capital to support its development pipeline.

Adactus' on-going development programme is set to deliver 1,500 units by 2018.

L&G has invested £500m in social housing in just over 18 months.

Alex Gipson, lending manager at L&G, said: "It was obviously important to us that Adactus had a clear business model and strong financial footing. What’s more, what excited us about working with them was the clear sense that merely maintaining the status quo was not an option to the board and executive team. From discussions it is clear that seeking continuous improvements in every area of their business is part of their DNA."

Paul Chisnell, group director of finance at Adactus Housing Group, said: “As we look to continue to deliver much needed development, we have diversified our funding sources and this loan reflects a significant step forward for us.

"This is not purely a financial transaction but a commencement of a partnership between two organisations with a shared vision for bringing about real improvements to the UK's housing market."

The deal closes only a week after L&G announced a £40m, 20-year debt facility to Rooftop Housing Group.
Other recent social housing deals concluded by L&G have included a £50m, 40-year debt facility to Housing Solutions, a £102m, 15-year deal to The Hyde Group and a £40m, 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 £252m.

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