Law firm Winckworth Sherwood has advised Swan Housing on a transaction specially designed for build to rent developers involving a £22m 40-apartment scheme that forms part of the Blackwall Reach regeneration project.
Blackwall Reach will create 1,575 new homes on a 20-acre site in East London with a mix of rental and shared ownership tenures, developed by Swan Housing and NU Living.
The scheme saw Swan Housing build the properties and then sell to LINQ Housing. LINQ Housing has raised debt finance through a private placement with M&G Investments. LINQ Housing has contracted Hera, the housing management arm of Swan to rent and manage the properties, and issued Swan Housing with equity in the LINQ Group.
LINQ Housing is a housing financing model designed with the needs of BTR developing housing associations who may wish to retain management. LINQ supports the volume delivery of good quality and affordable housing through a novel and efficient capital and funding mechanism which was sponsored by LINQ, Notting Hill Genesis and M&G Investments.
The Winckworth Sherwood team was led by Housing Finance Partner Ruby Giblin supported by Real Estate Investment partner James Duncan, Banking partner Patricia Umunna, Tax partner Robin Dabydeen, and Housing and Local Government associate Shelley Gormley.
Ruby Giblin said: “This was an exciting deal, especially considering the COVID restrictions. Even though tenants were keen to move in and the demand was there, delays during the first COVID wave meant it took a little longer than would have normally been the case.
“The LINQ Housing model of funding new homes is proving attractive to housing associations. This is the third scheme to be funded through LINQ and its partners and is being watched closely by the social housing market.”