Winckworth Sherwood LLP has acted for Major Housing Association Limited, a for-profit registered provider of social housing, in negotiating and securing development finance of around £8.12m from Pluto Finance to fund the development of 58 fully London Affordable Rent Units, and a commercial unit, in Seven Kings, Ilford. The loan is to be repaid within 26 months from initial drawdown (or, if earlier, any sale or refinance of the completed development).
Major is a for-profit housing association with a primary focus on developing new affordable homes in the Greater London area. It currently has 8 units under management and over 400 under development.
This was Pluto’s first loan to the social housing sector with Winckworth Sherwood able to successfully liaise with all stakeholders to find a position that is both commercially acceptable to all parties and appropriate to Major’s status as a registered provider and an operating entity with other ongoing developments. In particular, it was crucial to ensure that the facility agreement and security package reflected the importance of Major’s regulatory obligations.
Lucy Grimwood and James Corbett, Partners in Winckworth Sherwood’s Social Housing Finance and Real Estate teams respectively, jointly led on the deal. They said: “It is great to support Major in this positive transaction, which will ultimately enable Major to develop more urgently-needed affordable housing and also brings a new funder to the sector.”
Aman Singh, a Director at Major said: “Winckworth Sherwood’s commitment to meeting our needs and demonstrating a genuine understanding of our business is greatly appreciated. The firm brings an unwavering attention to detail and proactive approach, with the team having a strong understanding of the regulatory framework, investing partner-level time to ensure the successful completion of our transactions.”
Burges Salmon LLP acted for Pluto in the provision of funding and property matters.
Following completion of the development finance agreement, Winckworth Sherwood is subsequently advising Major on its corporate structuring options for its social housing developments going forwards.
Lucy and James add: “For-profit RPs remain a key growth area in the sector and present a real opportunity to increase the delivery of new social housing, and our role in both this transaction and advising Major more generally shows the firm’s leading position in this area.”