Readdressing the UK housing shortage
17 Jul 2014
We've invested £500 million in social housing in just over 18 months, as part of our commitment to the housing and infrastructure needs of the UK.
Rooftop Housing Group
This month, we announced that we've agreed a £40 million, 20 year debt facility to Rooftop Housing Group, to support the delivery of up to 900 much-needed 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 £31 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. These schemes are special because of the facilities they offer. ExtraCare’s approach is based on the principle that age, health or financial means shouldn’t be a barrier to enjoying a high quality of life in later years.
With a high commitment to improving the sustainability of UK homes, Rooftop also seeks to implement a number of forward thinking sustainability measures into its properties, with flagship projects including its development at Blakes Hill, North Littleton which has achieved Code for Sustainable Homes Level 6, the highest possible rating of energy efficiency.
Alex Gipson, Lending Manager here at Legal & General, said: “Providing quality accommodation for those in retirement and promoting the long term benefits of sustainable development are key interests of both organisations and an excellent base upon which to commence an on-going relationship.”
Just a week after closing the deal with Rooftop, we announced that we had agreed a £25 million, 40 year loan to Adactus Housing Group, signaling our sixth direct investment deal in the social housing sector.
Adactus is a regional housing association that is active across 21 local authority areas in the North West of England, with roots dating back to 1964. Today the Group owns and manages over 13,000 units, employs close to 600 staff and has an annual turnover in excess of £55 million. It is one of the largest associations in its region.
The loan will provide Adactus with further capital to support its development pipeline, with its on-going programme set to deliver 1,500 units by 2018. As well as delivering much needed quality affordable housing, the wider benefits are reflected by their 2011-2013 programme of 548 homes both supporting 1,127 jobs and having a £48.5 million impact on the local economy.
Supporting Housing Associations Elsewhere in the UK
Our other recent social housing deals include a £50 million, 40 year debt facility to Housing Solutions, a £102 million, 15 year debt facility to The Hyde Group and a £40 million, 25 year debt facility to Thames Valley Housing Association. We also recently secured a portfolio of over 4,000 housing units, let to Places for People on a new 50 year lease, for £252 million.